Shivangi Sinha
During the controversy surrounding Martha Stewart’s insider trading allegations, one name was central to the scandal: Sam Waksal, a friend of Stewart. He had already faced accusations and a conviction for fraud. It was her shares in his company that she sold, leading to speculations. In Netflix’s Martha, Waksal shares his perspective on the case, reflecting on the intense scrutiny and its toll while exploring his personal friendship with Stewart and the impact of their shared fallout.
Sam Waksal’s Arrest Shifted the Attention to Martha Stewart
Samuel “Sam” Waksal began his career in the sciences, earning a Ph.D. in immunology from Ohio State University and conducting postdoctoral research at prestigious institutions, including Stanford University and Tufts University. After several years in academia, he shifted to entrepreneurship and, in 1982, founded ImClone Systems, a biotechnology company dedicated to cancer treatment research. Waksal spearheaded the development of Erbitux, an innovative cancer drug, which initially showed great promise for treating certain types of tumors, particularly head and neck cancers. Erbitux eventually attracted significant interest from pharmaceutical companies and investors, propelling ImClone to the forefront of biotech.
In December 2001, however, Waksal’s career took a downturn after the Food and Drug Administration (FDA) rejected ImClone’s application for Erbitux due to data concerns. Before the rejection was made public, Waksal attempted to sell his ImClone shares and allegedly tipped off close friends and family, leading to accusations of insider trading. On June 12, 2002, he was arrested on charges of insider trading, securities fraud, and obstruction of justice. Waksal ultimately pleaded guilty to these charges along with perjury. On March 3, 2003, he admitted guilt to charges of conspiracy and wire fraud for bypassing $1.2 million in sales taxes tied to $15 million worth of artwork purchases.
Martha, a friend of Waksal, sold her ImClone shares just before they plummeted, leading to allegations of insider trading. Although Stewart maintained her innocence, the case sparked a high-profile investigation and trial, with her reputation and brand at stake. The controversy led to Stewart’s eventual conviction on charges of lying to federal investigators. Waksal’s actions and Stewart’s involvement in the stock sale triggered a chain of events that ultimately reshaped her career, forcing her to step down from her media company’s leadership and damaging the public trust she had built over the years as a businesswoman and lifestyle icon.
Sam Waksal Vowed That He Changed as a Man After His Conviction
Sam Waksal was sentenced to seven years and three months in prison and ordered to pay over $4 million in fines and back taxes. He was released on February 9, 2009, but faced a lifetime ban from serving as an officer or director of any public company. Despite these setbacks, Waksal reentered the business world shortly after his release. In January 2010, he founded Kadmon Pharmaceuticals, channeling his scientific expertise and business acumen into this new venture. Although he stepped down as CEO in 2014 when Kadmon prepared for an IPO, he continued as the company’s Founder and Chief of Science Innovation and Strategy until February 2016, overseeing Kadmon’s growth and strategic direction.
In a 2015 interview, Waksal openly reflected on the mistakes of the early 2000s, calling them pivotal events that deeply changed him as a person. He explained that he had become more introspective, embracing a shift in perspective that he applied directly to his new company, Kadmon Pharmaceuticals. When he stepped down as CEO, he passed the reins to his brother, Harlan Waksal, expressing full confidence in Harlan’s leadership and their shared vision to elevate the firm’s impact and success.
Sam Waksal Continues to do Groundbreaking Work as a Researcher and Entrepreneur Today
Sam Waksal has continued to pursue his ambitious vision within the biotechnology industry, founding several companies aimed at groundbreaking advancements. In January 2015, he launched MeiraGTx, a clinical-stage gene therapy company, where he remains the Founding Chairman, guiding its progress in genetic medicine. In June 2019, he established Equilibre Holding Company, which operated until January 2023. Today, Waksal serves as a visiting fellow at the Appel Alzheimer’s Disease Research Institute at Weill Cornell Medicine, focusing his research on neurodegenerative diseases. He is also affiliated with the Brain-Mind Institute, where his work explores the intersection of the brain and the immune system, signaling his ongoing commitment to transformative medical research.
In January 2020, Waksal established himself at Graviton Biopharmaceuticals Corporation, stepping into the roles of Chairman, Chief Executive Officer, and President. This new venture allowed him to focus on areas he had always been passionate about, specifically addressing signaling disorders within the immune system. By January 2022, he transitioned to become the CEO of Graviton Bioscience, where he is dedicated to the mission of curing diseases by restoring homeostasis. As a prominent figure in the pharmaceutical industry, Waksal is known for his supportive approach, continuously encouraging innovation and adaptation to the evolving demands of the field.
Sam Waksal’s Daughters are His Most Cherished Gifts
Sam Waksal’s personal life is characterized by a deep commitment to family, as he is a father to two daughters, Aliza and Elana. Elana has embraced a new chapter in her life through her marriage to Jarrett Posner, who hails from the prominent Posner family, known for their significant influence in various business sectors. Jarrett’s father, Steven Posner, is a respected businessman in his own right, further intertwining Waksal’s family with a legacy of entrepreneurship and achievement. While much of Waksal’s public persona is shaped by his professional endeavors, his role as a devoted father remains a cornerstone of his identity, reflecting the values he holds dear the most.
Read More: Mariana Pasternak: What Happened to Martha Stewart’s Former Best Friend?
