Count 1: Conspiracy to Obstruct Justice, Make False Statements, and Commit Perjury

"From in or about January 2002 until in or about April 2002, in the Southern District of New York and elsewhere, PETER BACANOVIC and MARTHA STEWART, and others known and unknown, unlawfully, willingly, and knowingly did combine, conspire, confederate, and agree together and with each other to commit offenses against the United States, to wit: to obstruct justice … to make false statements … and to commit perjury. …"

Count 2: False Statements by Peter Bacanovic

In an unsworn telephone interview with the Securities and Exchange Commission on Jan. 7, 2002, Peter Bacanovic "unlawfully, willingly, and knowingly, in a matter within the executive branch of the Government of the United States, falsified, concealed, and covered up by trick, scheme, and device material facts and made materially false, fictitious, and fraudulent statements and representations":

• Specification 1: Bacanovic falsely stated that, on Dec. 20, he had a conversation with Stewart in which she decided to sell her ImClone at $60 per share.
• Specification 2: Bacanovic falsely stated that, on Dec. 27, he had a conversation with Stewart in which he told Stewart that ImClone's price had dropped, and she told him to sell her stock.

Count 3: False Statements By Martha Stewart

In an unsworn interview with the U.S. attorney SEC, and FBI in New York on Feb. 4, 2002, Martha Stewart "unlawfully, willingly, and knowingly…falsified, concealed, and covered up by trick, scheme, and device material facts and made materially false, fictitious, and fraudulent statements and representations":

• Specification 1: Stewart falsely stated that, in a conversation that occurred when ImClone was trading at $74, Stewart and Bacanovic decided Stewart would sell when ImClone fell to $60.
• Specification 2: Stewart falsely stated that, on Dec. 27, at approx 1:30pm, Stewart spoke to Bacanovic, who told her ImClone was a little below $60. He asked if she wanted to sell and she said yes.
• Specification 3: Stewart falsely stated that she did not recall speaking with Bacanovic's assistant that day.
• Specification 4: Stewart falsely stated that, before ending her call with Bacanovic, she and Bacanovic also discussed Martha Stewart Living Omnimedia and Kmart.
• Specification 5: Stewart falsely stated that she decided to sell stock on Dec. 27 because she did not want to be bothered over her vacation.
• Specification 6: Stewart falsely stated that she not know if there was a message from Bacanovic on Dec. 27 in the phone log.
• Specification 7: Stewart falsely stated that, from Dec. 28 until the date of the interview, she and Bacanovic only had one conversation about ImClone and discussed information in the public arena.
• Specification 8: Stewart falsely stated that, from Dec. 28 until the date of the interview, Bacanovic mentioned that Merrill Lynch had been questioned by the SEC about ImClone, but he did not tell her that he himself had been questioned or that he had been questioned regarding her account.

Count 4: False Statements By Martha Stewart

In an unsworn telephone interview with the U.S. attorney, SEC, and FBI on April 10, 2002, Martha Stewart "unlawfully, willingly, and knowingly…falsified, concealed, and covered up by trick, scheme, and device material facts and made materially false, fictitious, and fraudulent statements and representations":

• Specification 1: Stewart falsely stated that she did not recall if she and Bacanovic discussed Sam Waksal on Dec. 27, nor did she recall being informed that any of the Waksals were selling stock.
• Specification 2: Stewart falsely stated that, sometime in November or December, she and Bacanovic decided that she would sell when ImClone went to $60.
• Specification 3: Stewart falsely stated that, on Dec. 27, at approx 1:30, she spoke to Bacanovic, who told her that ImClone was trading below $60 and recommended she sell.

Count 5: Making and Using False Documents By Peter Bacanovic

"In or about January 2002, in the Southern District of New York and elsewhere, PETER BACANOVIC unlawfully, willingly, and knowingly…made and used false writings and documents knowing the same to contain materially false, fictitious, and fraudulent statements and entries, to wit, Bacanovic altered [the worksheet he used for his Dec. 20-21 portfolio review with Stewart] to add the notation "@60" and caused it to be produced to the SEC."

Count 6: Perjury By Peter Bacanovic (Feb 13)

"On February 13, 2002, in the Southern District of New York, having taken an oath before a competent tribunal, officer and person…namely, in testimony before an officer of the SEC, that he would testify, declare, depose, and certify truly,…unlawfully, willingly, knowingly, and contrary to such oath, stated and subscribed material matters which he did not believe to be true":

• Specification 1: Regarding the message he left for Stewart on Dec. 27, 2001, Bacanovic testified that "the message was to please call us back, and also to please advise her that ImClone stock was whatever the price was at that time." He denied that he told Stewart's assistant that the price was dropping, and he said the message wasn't urgent.
• Specification 2: Asked whether ImClone had come up in the January meeting between Bacanovic and Stewart, Bacanovic testified that Stewart asked he had spoken to Sam and he said "no." He further testified that ImClone did not come up in any other conversations.
• Specification 3: Bacanovic described the conversation that led to the understanding between him and Stewart that she would sell her stock if it fell to $60, which she didn't think it would.
• Specification 4: Asked whether he had ever told Stewart that the SEC was investigating sales of ImClone, Bacanovic testified that he said that Merrill Lynch had been reviewing the issue internally. He testified that he did not tell her that anyone was looking at her ImClone transactions specifically and that she didn't ask.
• Specification 5: Bacanovic testified that he had notes about the $60 conversation—that the understanding was reflected on the worksheet in "a very loose way."Specification 6: Bacanovic provided further testimony about the conversation in which he and Stewart arrived at the $60 understanding.

Count 7: Obstruction of Justice By Peter Bacanovic

"From in or about January 2002 through in or about April 2002, in the Southern District of New York and elsewhere, PETER BACANOVIC unlawfully, willingly, and knowingly, corruptly influenced, obstructed, and impeded, and endeavored to influence, obstruct, and impede the due and proper administration of the law under which a pending proceeding was being had before a department and agency of the United States, namely, the SEC, by providing and causing to be provided false and misleading information and documents to the SEC relating to the sale of ImClone stock by MARTHA STEWART."

Count 8: Obstruction of Justice By Martha Stewart

"From in or about January 2002 through in or about April 2002, in the Southern District of New York and elsewhere, MARTHA STEWART unlawfully, willingly, and knowingly, corruptly influenced, obstructed, and impeded, and endeavored to influence, obstruct, and impede the due and proper administration of the law under which a pending proceeding was being had before a department and agency of the United States, namely, the SEC, by providing and causing to be provided false and misleading information and documents to the SEC relating to Stewart's sale of ImClone stock."

Count 9: Securities Fraud By Martha Stewart

"[I]n an effort to stop or at least slow the steady erosion of [Martha Stewart Living Omnimedia's] stock price caused by investor concerns, STEWART made or caused to be made a series of false and misleading public statements concerning her sale of ImClone stock on December 27, 2001 that concealed that Stewart had been provided information regarding the sale and attempted sale of [ImClone shares held by Sam Waksal and his family] and that Stewart had sold her stock while in possession of that information. Stewart made these false statements with the intent to defraud and deceive purchasers and sellers of MSLO common stock and to maintain the value of her own MSLO stock …"

• June 6: Stewart caused her attorney to provide to the Wall Street Journal a false and misleading explanation for her ImClone sale (the $60 understanding).
• June 12: In a public statement, Stewart described the $60 understanding, described the call she received from her broker on Dec. 27, and said that she had no nonpublic information about ImClone when she sold her stock.
• June 18: Stewart released a second public statement that reiterated the June 12 statement, said the ImClone sale was "based on information that was available to the public that day," said she had sold the stock because it had fallen below $60, and said she had cooperated with the SEC and U.S. attorney's office "fully and to the best of my ability."