New York, June 11: Samuel Waksal, the founder of ImClone Systems, was sentenced on Tuesday to more than seven years in prison for orchestrating an insider trading scheme the judge said undermined confidence in corporate America. US district judge William Pauley ordered Waksal, 55, to serve the maximum 87 months in prison and pay the top fine of $3 million. In addition, he ordered Waksal to pay $1.26 million in restitution. The insider trading scheme led to last week's indictment of Waksal's good friend, style-setter Martha Stewart.
Pauley harshly criticized ImClone's former chief executive for the harm he caused to his family, co-workers, the investing public and cancer patients who are awaiting the development of the company's cancer-fighting drug, Ebitrux.
"You abused your position of trust as the chief executive officer of a major corporation and undermined the public's confidence in the integrity of the capital markets," Pauley said. "Then you tried to lie your way out of it... you even jeopardised the well being of your family... the harm you wrought is incalculable."
The judge ordered Waksal to surrender on July 2 and said he must wear an electronic monitoring bracelet and remain under house arrest until he goes to prison. Bureau Report