ImClone Wants $21 Million from Jailed Founder

ImClone Systems Inc. is suing its former chief executive, Sam Waksal, for more than $21 million in income taxes it paid on his behalf.

Reuters reported that ImClone founder Waksal, who is serving a seven-year prison sentence for insider trading and tax evasion, is accused of failing to pay federal, state or local income taxes on almost $63 million, which came from exercising share options and warrants.

Court papers filed Wednesday in Manhattan Supreme Court say ImClone was left with the bill when Waksal failed to pay income taxes, and that he did not file a tax return reporting compensation for 2000 until February 2003.

ImClone wants Waksal to return the shares or the proceeds from the sales so the company can take care of the withholding tax obligations.

Waksal figured prominently in the trial of homemaking guru Martha Stewart. Waksal was arrested after members of his family sold ImClone shares in December 2001, one day before the U.S. Food and Drug Administration was to publish a critical assessment of one of ImClone’s cancer drugs. Stewart, a friend of Waksal’s, also sold ImClone shares at that time.

She was convicted last week of one count of conspiracy, two counts of making false statements and one count of obstruction. She awaits sentencing and plans to appeal.

Upcoming CPE Webinars

Apr 22
Is everyone at your organization meeting your client service expectations? Let client service expert, Kristen Rampe, CPA help you establish a reputation of top-tier service in every facet of your firm during this one hour webinar.
Apr 24
In this session Excel expert David Ringstrom, CPA introduces you to a powerful but underutilized macro feature in Excel.
Apr 25
This material focuses on the principles of accounting for non-profit organizations' revenues. It will include discussions of revenue recognition for cash and non-cash contributions as well as other revenues commonly received by non-profit organizations.
Apr 30
During the second session of a four-part series on Individual Leadership, the focus will be on time management- a critical success factor for effective leadership. Each person has 24 hours of time to spend each day; the key is making wise investments and knowing what investments yield the greatest return.