U.S. District Judge William Pauley sentenced Samuel Waksal, founder and former chief executive of ImClone Systems, on Tuesday to 87 months in prison, and ordered him to pay $3 million in fines, plus $1.26 million in restitution. Pauley condemned Waksal for the damage he caused to society including the cancer patients who are still 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.”
Pauley said the harm Waksal wrought was incalculable: “You even jeopardized the well being of your family.”
In October, Waksal pleaded guilty to six of the 13 charges against him. In March he also pleaded guilty to charges that he evaded taxes on $15 million worth of art he purchased.
“I am deeply disturbed and so very sorry for my actions,” said Waksal, who kept clearing his throat and tried to gain composure in front of a packed courtroom.
*”Please know how much I tried to do for the cancer community,” he said. “I consider myself one of the luckiest people in the world. Erbitux is moving forward to help ease the pain and suffering of cancer patients.”.
(via Reuters)
5 responses so far ↓
Karen Bond // Jul 23, 2003 at 8:59 am
I read with dismay a number of articles today about Sam Waksal. Let me assure you that there is no such thing as a white-collar prison term. Nor is there a ClubFed. These articles exemplifies America’s ignorance of what goes on in a Federal prison. As one of the white-collar criminals referred to, let me assure you that Sam Waksal and Terence Michael Clarke will not find a concierge or maid at the Bureau of Prisons’ facility where they end up.
Having seen the federal system as a lawyer and then as a federal prisoner, I have seen it at its best and at its worst. I was sentenced to a federal prison camp and it’s true that there are no guard towers nor are there any fences except the psychological ones which I can assure you are imminently more damaging that barbed wire. Federal prison is a scary place. Having been assured by my high-priced lawyer that I would be in no danger, I self-surrendered at FPC Lexington thinking like you do because after all if Leona Helmsley survived FPC Lexington, I figured I could too. There are no private rooms, but there are “bus stops” that held 20+ women. There are no televisions in any rooms, but there are three that 350 women had to share. If you were really lucky and could afford the $30 radio/headset which you must have to hear since no televisions had sound you might get to watch one of them if the cable was working and if you were lucky enough to snag one of the 20 chairs in the television viewing room. There are no swimming pools. If you are lucky though, you might be able to take a shower if you were able to stand in line for one of the six (6) showers that 150 women had to share. There are no yoga classes, but if there is a prisoner who happens to know yoga or Pilates, he/she may be able to informally organize a class if you can find someplace to hold it. There is no spa or health club. There is one exercise bike, one stepping machine, two treadmills (but only one works) and a weight station with most of the parts missing.
You’ll be happy to know that furloughs are very, very rare and only occur in the last year of your sentence. The Bureau of Prison’s rarely grants furloughs. I’ve seen countless women be denied permission to attend the funeral of their spouse, parent or child. Those who were given permission paid for their own transportation and for the salary of the guard who accompanied them. Most prisoners can’t afford this cost so if their family can’t pay it, they aren’t granted a furlough. The fact that there has been no federal parole since the late 1980s means federal prisoners can only reduce their sentence by receiving approx. 53 days per year credit for good behavior. Rest assured that Sam Waksal and Terence Clarke will serve their full sentences and that it will cost you as an American paying taxes at least $28,000 per year to incarcerate each of them.
One thing not mentioned is the incredible educational and vocational opportunities offered to federal prisoners. I earned $5.25/month and worked 40 hours per week cleaning toilets, washing cars, before I finally worked my way up to where I was allowed to scrub the stairwells at the V.A. Hospital in Lexington, Kentucky where I made 12¢ per hour. The million dollars the court ordered me to pay while incarcerated was paid at a rate of $25/quarter out of that salary when I could have been performing worthwhile work making a wage that would have quickly paid that million dollars. This is how America wants it though. Lock up the white-collar criminals and order them to pay millions in fines and restitution.
As a taxpayer, do you realize just how little of those millions actually get paid? Post-prison I am working a job where I am paid minimum wage and in case you don’t know what it is, it is $5.15/hour which is a huge increase from my 12¢/hour prison salary. Now I can pay the court $25/month against the approx. million I was ordered to repay since I now make in a week what I used to make in an hour. America has succeeded in incapacitating white-collar criminals. I’ve lost count of the number of doctors, lawyers and bankers I met while in federal prison that were also scrubbing toilets or folding napkins in the kitchen. America has assured that some of the most brilliant minds in America will never again make a substantial contribution to society, nor will they ever be in a position to quickly repay the millions ordered by the federal courts.
Karen S. Bond, J.D.
Executive Director
Federal CURE, Inc.
2152 Wayfaring Drive
Reynoldsburg, Ohio 43068
(614) 501-6897
director@fedcure.org
http://www.fedcure.org
john kilgore // Aug 24, 2003 at 2:18 am
Very well said Ms. Bond but you forgot to mention the part of the process that includes a supremely well funded advesary who often forces you to accept a plea. If you don’t take the deal and you lose the costs in money and the loss of liberty and trial attorney costs makes you say yes to the deal. Well thats my 2 cents and for you thats 2 points off the guidelines. Thank you.
Peggy // Jan 4, 2004 at 8:09 pm
My step daughter is getting prepared to go to Lexington camp in Feb. 2004. Your story sounds like a carbon copy of hers. I’m sure that if you are agreeable she would love to correspond with you prior to her date to report to “The Camp”. Thank you!
Mike Palacios // Oct 15, 2004 at 7:28 pm
I was quite amused with Ms. Bond’s assertion that “some of the most brilliant minds in America will never again make a substantial contribution to society”…What a shame that Ms. Bond puts herself on such a high platform - who is she to judge who in America has a brilliant mind. Although I only earned a BA from Ohio State, when I judge someone’s brilliance, I look at the scope of the person, not just earning potential. Ms. Bond writes that email with venom in her finger tips. Ms. Bond, YOU COMMITTED A FEDERAL CRIME. No offense, but brilliance doesn’t come to mind when describing a successful attorney accused and convicted of securities’ fraud. your self righteous attempt to denounce the legal foundation that you once participated shows the hypocrasy of your assertion. I’m sorry that you’re only making minimum wage, may I suggest that you vote for John Kerry - he has a domestic plan to raise the wage.
lauryn galindo // Dec 3, 2004 at 1:37 am
i was just sentenced to 18mos for conspiracy to commit visa fraud (ie helping almost 800 orphans find homes)….still waiting for my assignment of where to self surrender…i had 6 agencies , my state representative and our mayor all ask that i be kept in the community to continue my public service, how shameful for human lives/ resources to be wasted in prison
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