Samuel D. Waksal
Encyclopedia
Samuel D. Waksal is the founder and former CEO of the biopharmaceutical
company ImClone Systems
, which developed the drug Erbitux (cetuximab). In the course of an insider trading scandal, he was convicted of several white collar crimes, served time in federal prison, and has now been released.
in 1969 and a doctorate
in immunobiology in 1974, both from The Ohio State University
.
charges. On October 15, he pleaded guilty to charges of securities fraud
, bank fraud
, obstruction of justice
, and perjury
.
On March 3, 2003 he pleaded guilty to charges of conspiracy
and wire fraud
for avoiding $1.2 million in sales taxes on $15 million in artwork. The art included works by Mark Rothko
, Richard Serra
, Roy Lichtenstein
, and Willem de Kooning
, purchased between June 2000 and October 2001. He did not pay the necessary taxes at the time of purchase, but did pay the taxes in fall 2002.
On June 10, 2003, Waksal was sentenced to seven years and three months in prison and ordered to pay more than $4 million in fines and back taxes, all the maximum punishments allowable under law. As a federal inmate, Waksal was not eligible for parole. Waksal wanted to go to Federal Prison Camp, Eglin
, but instead he went to Federal Correctional Institution, Schuylkill. He was serving time in the Federal Correctional Institution, Otisville
in New York state. Waksal, Federal Bureau of Prisons
(BOP) # 53803-054, was released from BOP custody on February 9, 2009.
Biopharmaceutical
Biopharmaceuticals are medical drugs produced using biotechnology. They include proteins , nucleic acids and living microorganisms like virus and bacteria where the virulence of viruses and bacteria is reduced by the process of attenuation, they can be used for therapeutic or in vivo diagnostic...
company ImClone Systems
ImClone Systems
ImClone Systems Incorporated is a biopharmaceutical company dedicated to developing biologic medicines in the area of oncology. It was founded in 1984 and is headquartered in New York City. On October 6, 2008, it accepted a $6.5 billion acquisition offer from Eli Lilly and Company, and became a...
, which developed the drug Erbitux (cetuximab). In the course of an insider trading scandal, he was convicted of several white collar crimes, served time in federal prison, and has now been released.
Education
Waksal earned a bachelor's degreeBachelor's degree
A bachelor's degree is usually an academic degree awarded for an undergraduate course or major that generally lasts for three or four years, but can range anywhere from two to six years depending on the region of the world...
in 1969 and a doctorate
Doctorate
A doctorate is an academic degree or professional degree that in most countries refers to a class of degrees which qualify the holder to teach in a specific field, A doctorate is an academic degree or professional degree that in most countries refers to a class of degrees which qualify the holder...
in immunobiology in 1974, both from The Ohio State University
Ohio State University
The Ohio State University, commonly referred to as Ohio State, is a public research university located in Columbus, Ohio. It was originally founded in 1870 as a land-grant university and is currently the third largest university campus in the United States...
.
Criminal activity and conviction
He was arrested June 12, 2002 on insider tradingInsider trading
Insider trading is the trading of a corporation's stock or other securities by individuals with potential access to non-public information about the company...
charges. On October 15, he pleaded guilty to charges of securities fraud
Securities fraud
Securities fraud, also known as stock fraud and investment fraud, is a practice that induces investors to make purchase or sale decisions on the basis of false information, frequently resulting in losses, in violation of the securities laws....
, bank fraud
Bank fraud
Bank fraud is the use of fraudulent means to obtain money, assets, or other property owned or held by a financial institution, or to obtain money from depositors by fraudulently representing to be a bank or financial institution. In many instances, bank fraud is a criminal offense...
, obstruction of justice
Obstruction of justice
The crime of obstruction of justice, in United States jurisdictions, refers to the crime of interfering with the work of police, investigators, regulatory agencies, prosecutors, or other officials...
, and perjury
Perjury
Perjury, also known as forswearing, is the willful act of swearing a false oath or affirmation to tell the truth, whether spoken or in writing, concerning matters material to a judicial proceeding. That is, the witness falsely promises to tell the truth about matters which affect the outcome of the...
.
On March 3, 2003 he pleaded guilty to charges of conspiracy
Conspiracy (crime)
In the criminal law, a conspiracy is an agreement between two or more persons to break the law at some time in the future, and, in some cases, with at least one overt act in furtherance of that agreement...
and wire fraud
Wire fraud
Mail and wire fraud is a federal crime in the United States. Together, 18 U.S.C. §§ 1341, 1343, and 1346 reach any fraudulent scheme or artifice to intentionally deprive another of property or honest services with a nexus to mail or wire communication....
for avoiding $1.2 million in sales taxes on $15 million in artwork. The art included works by Mark Rothko
Mark Rothko
Mark Rothko, born Marcus Rothkowitz , was a Russian-born American painter. He is classified as an abstract expressionist, although he himself rejected this label, and even resisted classification as an "abstract painter".- Childhood :Mark Rothko was born in Dvinsk, Vitebsk Province, Russian...
, Richard Serra
Richard Serra
Richard Serra is an American minimalist sculptor and video artist known for working with large-scale assemblies of sheet metal. Serra was involved in the Process Art Movement.-Early life and education:...
, Roy Lichtenstein
Roy Lichtenstein
Roy Lichtenstein was a prominent American pop artist. During the 1960s his paintings were exhibited at the Leo Castelli Gallery in New York City and along with Andy Warhol, Jasper Johns, James Rosenquist and others he became a leading figure in the new art movement...
, and Willem de Kooning
Willem de Kooning
Willem de Kooning was a Dutch American abstract expressionist artist who was born in Rotterdam, the Netherlands....
, purchased between June 2000 and October 2001. He did not pay the necessary taxes at the time of purchase, but did pay the taxes in fall 2002.
On June 10, 2003, Waksal was sentenced to seven years and three months in prison and ordered to pay more than $4 million in fines and back taxes, all the maximum punishments allowable under law. As a federal inmate, Waksal was not eligible for parole. Waksal wanted to go to Federal Prison Camp, Eglin
Federal Prison Camp, Eglin
Federal Prison Camp, Eglin was a Federal Bureau of Prisons minimum security prison on the grounds of Eglin Air Force Base.By 2006 the federal government decided to cut costs by closing Eglin and returning the buildings to the air force. The prisoners were moved to Federal Prison Camp,...
, but instead he went to Federal Correctional Institution, Schuylkill. He was serving time in the Federal Correctional Institution, Otisville
Federal Correctional Institution, Otisville
The Federal Correctional Institution in Otisville is located in Orange County, New York, USA. The federal prison, which opened in 1977, is a medium security facility, located in the Town of Mount Hope a quarter mile from the Otisville Correctional Facility, a New York medium security prison, thus...
in New York state. Waksal, Federal Bureau of Prisons
Federal Bureau of Prisons
The Federal Bureau of Prisons is a federal law enforcement agency subdivision of the United States Department of Justice and is responsible for the administration of the federal prison system. The system also handles prisoners who committed acts considered felonies under the District of Columbia's...
(BOP) # 53803-054, was released from BOP custody on February 9, 2009.
External links
- ImClone Founder Pleads Guilty to Avoiding Sales Taxes, The New York Times, March 3, 2003
- ImClone founder Waksal sentenced to 7 years in prison, San Francisco Chronicle, June 10, 2003
- Sam Waksal: I Was Arrogant, CBS News, October 2, 2003
- Free Samuel Waksal argues that Waksal's insider trading should not be considered a crime and that he does not belong in jail
- Sam Waksal Political Contributions
- New York Post on his release from jail