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Martha Stewart in trouble...haha!

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Martha Stewart Phoned ImClone on Day Shares Sold, Papers Say

By Rip Watson

Washington, June 8 (Bloomberg) -- Martha Stewart tried to reach former ImClone Systems Inc. Chief Executive Samuel Waksal by telephone the same day she sold the company's stock, which has since fallen 86 percent after its cancer drug wasn't approved, the Washington Post and New York Times reported.

Stewart, chief executive of Martha Stewart Living Omnimedia, called Waksal on Dec. 27 at 1:43 p.m. on the same day she sold all of her shares in ImClone and one day before the Food and Drug Administration rejected the company's Erbitux cancer drug, the Post said, citing unidentified sources in Congress.

``Records show that Ms. Stewart's call came after she had already placed her order to sell,'' the New York Times quoted an unnamed spokeswoman as saying. ``She did not speak to Waksal at any time, and he never returned the call.''

Stewart spokeswoman Susan Magrino told Bloomberg News earlier this week that the transaction was ``entirely lawful.''

Magrino and Martha Stewart Living Omnimedia couldn't be reached for comment today.

A telephone log entry read, ``Martha Stewart something is going on with ImClone and she wants to know what,'' according to the Washington Post.

Transactions by insiders such as major shareholders are illegal when the transaction is based on information that isn't disclosed to every investor. A House panel is trying to determine when investors should have been told the FDA, ImClone and its partner Bristol-Myers Squibb Co. realized that there wasn't enough information in the Erbitux application to merit a review.

The Times reported, also without citing sources, that ImClone executives may have been told by an unnamed FDA official that the cancer drug application would be turned down, a few days before the agency's announcement on Dec. 28.

Stewart's 3,000 shares were worth about $175,000 at the time of the sale, based on the Dec. 27 closing price of $58.30. Shares of New York-based ImClone closed Friday at $8.45, an 86 percent drop.

i say...PUT THAT BITCH ON ICE!!!!!!!!!!!!!!

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