Broker’s Assistant in Stewart Trial Gets Fine

Jul 23, 2004  •  Post A Comment

The former broker’s assistant whose testimony helped sentence lifestyle guru Martha Stewart to five months in prison was himself spared jail time and instead was fined $2,000 for his role in Ms. Stewart’s illegal stock sale.

Douglas Faneuil, 28, faced up to a year in prison for accepting gifts designed to coax him into lying about the nature of Ms. Stewart’s sale of shares of ImClone Systems. Though he initially lied to investigators, he later provided critical testimony in the trial of Ms. Stewart and her broker, Peter Bacanovic, for whom Mr. Faneuil worked.

Though federal guidelines recommended a sentence of up to six months in prison, U.S. District Court Judge Miriam Goldman Cedarbaum cited his assistance in the trial as the basis of her ruling.

On July 16, Ms. Stewart and Mr. Bacanovic were each sentenced to five months on federal prison, five months of house arrest and fines associated with the sale, after having been convicted in March for lying and covering up the sale. Both plan to appeal.