Broker says Martha Stewart sold stock after inside tip

AFP, February, 2004

NEW YORK (AFP) — The star witness against lifestyle guru Martha Stewart admitted he gave her an illegal tip before she dumped her holding in biotech firm ImClone.

Former Merrill Lynch broker's assistant Douglas Faneuil delivered the most damaging testimony yet against Stewart.

The high-profile businesswoman is accused of having lied to investigators looking into her sale of some 4,000 shares in US biotechnology firm ImClone just before they slumped in value.

Prosecutors say Stewart unloaded her ImClone shares in December 2001 after she was informed the company's founder was selling.

ImClone founder Sam Waksal, who is serving a seven-year prison term for insider trading, was selling his stock after hearing anti-cancer drug Erbitux was about to be...