The Man Who Gave Martha Stewart Her Infamous Insider Trading Tip Is Getting Sued

samuel waksal

The man who gave Martha Stewart the stock tip that sent her to prison is back in the news.

This time Dr. Samuel Waksal — who advised Stewart to sell all of her ImClone shares when he learned his firm’s cancer drug wouldn’t attain FDA approval — is being sued for $4 million by a former associate, according to the New York Post.

From the Post:

A former business associate, Kevin Glodek, charges that Waksal used him to raise capital for the new firm, then cut him out of millions of dollars in promised commissions, according to the civil suit filed Friday in Manhattan Supreme Court.

Glodek, 37, claims he’s owed the $4 million fee from a $40 million transaction in 2012 between Waksal and two investors based on a written agreement.

Before serving five years in prison for the insider trading scandal, Waksal was a titan of the biotech industry and a popular New York socialite. He even dated Stewart’s daughter for nearly four years.

His fall was as epic as his rise.

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.