Raj Rajaratnam: How does he stack up in big insider-trading convictions?

4. Sam Waksal (Seven-year sentence, $4 million in fines and back taxes)

Ezio Petersen/Newscom
ImClone founder Sam Waksal reads a statement outside of Manhattan Federal Court on Oct. 15, 2002 after pleading guilty to securities fraud and obstruction of justice charges.

You might not recognize Samuel Waksal’s name, but you’ve certainly heard of his friend Martha Stewart. In 2001, Mr. Waksal, the founder of ImClone Systems, got word that the Food and Drug Administration would reject his company’s application for approval of a new drug. Waksal allegedly warned Ms. Stewart, who sold 4,000 shares of the stock before the FDA announcement sent it plummeting.

In 2003, Waksal was sentenced to seven years, three months in prison, and told to pay more than $4 million in fines and back taxes. He was also banned from heading any publicly-held company for the rest of his life. Stewart received five months in prison, though this wasn’t for insider trading, but rather for lying about the suspicious stock sale.

2 of 5
You've read 3 of 3 free articles. Subscribe to continue.
CSM logo

Why is Christian Science in our name?

Our name is about honesty. The Monitor is owned by The Christian Science Church, and we’ve always been transparent about that.

The Church publishes the Monitor because it sees good journalism as vital to progress in the world. Since 1908, we’ve aimed “to injure no man, but to bless all mankind,” as our founder, Mary Baker Eddy, put it.

Here, you’ll find award-winning journalism not driven by commercial influences – a news organization that takes seriously its mission to uplift the world by seeking solutions and finding reasons for credible hope.

Explore values journalism About us