The government's case against Martha Stewart and stockbroker Peter Bacanovic covered 14 days of testimony and included 21 witnesses. Here are some keys to what jurors heard:
Key witnesses:
— Douglas Faneuil. The young former brokerage assistant at Merrill Lynch & Co. testified Bacanovic ordered him on Dec. 27, 2001, to tip Stewart that the family of ImClone CEO Sam Waksal was bailing out of ImClone Systems stock. Faneuil also said he initially lied, under pressure from Bacanovic, to cover up the truth. The defense tried to discredit Faneuil as an admitted drug user and liar who was fixated on Stewart.
— Ann Armstrong. The assistant to Stewart testified that on Jan. 31, 2002, Stewart sat down at her desk and altered a computer log of a phone message from Bacanovic on Dec. 27. The defense tried to score points by showing Stewart ordered Armstrong to change the message back immediately.
— Mariana Pasternak. A longtime friend of Stewart, Pasternak testified that Stewart confided in her on Dec. 30, 2001, that she knew Waksal was trying to dump ImClone shares. She claimed Stewart added: "Isn't it nice to have brokers who tell you those things?" But Pasternak suggested under cross-examination that, while she believed Stewart made the remark, it could have been something Pasternak herself thought.
Key evidence:
— Message log: The government showed jurors a computer log of a phone message from Bacanovic to Stewart on Dec. 27, 2001, that read: "Peter Bacanovic thinks ImClone is going to start trading downward." Armstrong testified Stewart changed it to "Peter Bacanovic re imclone," but then immediately told her to change it back to the original wording.
— Worksheet: The government introduced a worksheet prepared by Bacanovic that showed stocks Stewart owned in December 2001. There are many handwritten marks on the sheet, but a national ink expert testified a mark of "@60" by an entry for ImClone was in a different ink. The government claims Bacanovic doctored the worksheet to support his story that he and Stewart had agreed to sell ImClone when it fell to $60 per share.
— Stock chart: Jurors saw stock charts for Martha Stewart Living Omnimedia that showed spikes in price when Stewart issued statements on June 12 and 18, 2002, claiming her ImClone sale had been proper and insisting there was a $60 agreement. The chart is central to the government's contention that Stewart was deliberately trying to protect her wealth by propping up her company's stock price.
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