Rep. Jim Greenwood, R-Pa., House Oversight & Inv. Subcommittee Chairman

This is a partial transcript from Your World with Neil Cavuto, August 20, 2002, that was edited for clarity. Click here for complete access to all of Neil Cavuto's CEO interviews.

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TERRY KEENAN, GUEST HOST: It is getting even hotter for Miss Martha. The domestic diva handing over records regarding her possible involvement in the ImClone scandal just about 20 minutes ago. Our next guest is the guy who is the recipient of those documents. He is Republican Congressman Jim Greenwood of Pennsylvania. He, of course, chairs the investigative committee that is doing all the digging, looking into this scandal. Congressman, good to have you with us.


KEENAN: So, the documents arrived within the hour. What are you looking for?

GREENWOOD: Well, we are looking to answer the question that Miss Stewart hasn't been able to answer for us definitively, and that is did she or did she not have insider information that would either consist of information to the -- about the fact that ImClone Corporation was about to receive a letter from the Food and Drug Administration saying that it wasn't going to review its product, which would cause -- it did cause the stock to fall precipitously, or did she at minimum know that Dr. Waksal, the CEO of the company, was furiously trying to sell his stock that day and had, in fact, arranged for the sale of his daughter's stock.

KEENAN: But that means she is in the position of having to prove a negative, that she didn't know something. Wouldn't it be just a lot easier to call her in, put her under oath and ask her those questions, and are you planning to do that?

GREENWOOD: Well, the easiest thing would be for her to come in and chat with us, as most others that we are engaged in, in inquiring during our investigations. She has refused to do that from the beginning, and so that is why we have had to piece this story together by trying to obtain these documents. We will subpoena her if we need to, and we may very well need to. She may, of course, take the Fifth Amendment and still not testify. But we will make that decision closer to Labor Day.

KEENAN: So, what would be in the documents that would keep you from asking her to come into talk to you?

GREENWOOD: Well, I think it would probably be the other way around. I think the issue would be if we see evidence in these documents that clearly and unequivocally challenged the assertion that she made in June, which is that she had no inside information and sold these stocks based on a preexisting arrangement with her broker, if there is clear evidence, and the evidence is certainly pointing that direction now, but if it is very clear evidence, then I think that would give us even more impetus to subpoena her. And then she'll to decide whether she will want to exercise her Fifth Amendment rights or not.

KEENAN: It has been widely reported that Douglas Faneuil, the assistant to Martha's broker, Peter Bacanovic, is discounting their story. Is it just the he said she said kind of situation or has Faneuil given you actual documentation?

GREENWOOD: Well, neither Bacanovic nor Faneuil have come in to interview, either, both of them have declined to do that. But we do know that both of them were engaged in the sale of the stock. They were Waksal's brokers as well as Mr. Stewart's brokers. We do know that they were communicating about is the news out on the day that the sale was made, probably referring to the bad news coming from the FDA. We do know that they were furiously trying to get in touch with her as she flew across the country on vacation, which was not what you would expect if you had a preexisting agreement just to sell the stock if it fell below a certain level. And we know that Merrill Lynch suspended both them because their stories were not holding up. So, all of this continues to point in the direction that is quite different from Mrs. Stewart's assertions.

KEENAN: Obviously, so much focus on Martha here, but, 7 million shares I think of ImClone traded that day that Martha traded her 4,000. The volume was picking up substantially right around that period. Is Martha just part of a bigger web that you are looking into regarding ImClone?

GREENWOOD: Oh, yes, and we are not we never woke up one morning and decided to investigate Martha Stewart. We decided to investigate ImClone, its cancer product, whether its cancer product was in fact what it was touted to be, why the FDA turned down the application, how that information was transmitted to the company and whether it was used for insider trading. Martha Stewart is only a one of many players in this. We are not focused solely on her by any stretch of the imagination.

KEENAN: All right. And the plot continues to thicken here. Thanks for joining us.

GREENWOOD: My pleasure.

KEENAN: Congressman Jim Greenwood from Pennsylvania.

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