Posted on: Friday, March 5, 2004

Jury deliberates for 3rd day in Stewart trial

By Erin McClam
Associated Press

NEW YORK — The Martha Stewart jury indicated yesterday that it was focusing on whether her stockbroker committed perjury in an interview about a phone message he left for the homemaking maven.

But jurors completed their second day of deliberations without reaching a verdict against Stewart or broker Peter Bacanovic. They were to resume deliberations this morning.

In a note to the judge, jurors asked about a charge that Bacanovic committed perjury when he told investigators he left a message for Stewart on Dec. 27, 2001, that simply gave the price of ImClone Systems stock.

Stewart's personal assistant, Ann Armstrong, has testified that the message did not include a stock price. On a computer log, Armstrong took the message down as: "Peter Bacanovic thinks ImClone is going to start trading downward."

In the interview, Bacanovic recalled the message this way: "I would like to speak with her, if possible, today and regarding ImClone and the current price of the stock is."

Bacanovic was under oath during the interview with the Securities and Exchange Commission on Feb. 13, 2002.

Stewart sold the stock later on Dec. 27, 2001, avoiding a heavy loss when the company announced the next day that the government had declined to review a key ImClone cancer drug.

To convict a defendant of perjury, jurors must rely on the testimony of at least two witnesses, or on one witness plus a document that supports what the witness said.

Their note to the judge asked whether it was enough to use Armstrong's testimony, plus the message log that Armstrong herself created.

"I think the short answer is yes," U.S. District Judge Miriam Goldman Cedarbaum said.