Editing Samuel D. Waksal

{{short description|American immunologist, businessman and convicted insider trader}}
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| name               =  Samuel D. Waksal
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| birth_name         =  Samuel David Waksal
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| education          = PhD
| alma_mater         = Ohio State University
| occupation         = Scientist, biotechnology executive, insider trader 
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| boards             = Cadus Corporation, Antigenics Inc., Test University, Rockefeller University 
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'''Samuel D. Waksal''' (born September 8, 1947) is the founder and former CEO of the [[biopharmaceutical]] company [[ImClone Systems]]. He is also the founder of [[Kadmon Pharmaceuticals]], which was financed with private capital and commenced operations in New York City in 2010.<ref>{{cite news|url=https://www.nytimes.com/2010/10/26/business/26drug.html?_r=0|title=Former IMCloe Chief Acquires Drug Company|newspaper=The New York Times|date=October 25, 2010|access-date=September 5, 2016}}</ref> At ImClone, Waksal led the company to develop the cancer drug [[Erbitux]] (cetuximab). During the course of its review process with the [[Food and Drug Administration]] (FDA) Waksal became involved in an insider trading scandal revolving around improper communications with personal friends and family members.  He was convicted of several securities violations, served time in federal prison, and was released.<ref>{{cite web|url=https://money.cnn.com/2003/06/10/news/companies/waksal_sentencing/|title=Waksal Gets 7-Plus Years|website=CNN Money|date= June 10, 2003|access-date=September 5, 2016}}</ref>

==Education and early career==
Waksal was born on September 8, 1947, in Paris, France, to a [[Jewish]] family, the son of [[Holocaust]] survivors. He earned a [[bachelor's degree]] in 1969 and a [[doctorate]] in [[immunobiology]] in 1974, both from [[Ohio State University|The Ohio State University]].<ref>{{cite news|url=http://www.baltimoresun.com/business/bal-iblurb1015-story.html|title=Samuel Waksal in Brief|newspaper=The Baltimore Sun|date=October 15, 2002 |access-date=September 5, 2016}}</ref>

Over the next 15 years, he worked as a medical researcher at [[Stanford University]], the [[National Cancer Institute]], [[Tufts University]] and [[Mount Sinai Hospital, New York]]. However, he often faced scrutiny for misrepresenting the source of material and fabricating lab results.<ref name=Stewart>{{cite book |title=Tangled Webs: How False Statements are Undermining America: From Martha Stewart to Bernie Madoff |last=Stewart |first=James |author-link=James B. Stewart |year=2011 |publisher=[[Penguin Press]] |location=[[New York City]] |isbn=9781594202698 |url-access=registration |url=https://archive.org/details/tangledwebshowfa00stew }}</ref><ref name=NYT>{{cite news|url=https://www.nytimes.com/2002/01/24/business/for-imclone-drug-entrepreneur-a-past-of-celebrity-and-notoriety.html|title=For ImClone Drug Entrepreneur, A Past of Celebrity and Notoriety|last=Pollack|first=Andrew|newspaper=[[The New York Times]]|date=2002-01-24|access-date=2012-04-04}}</ref>

==ImClone Systems==
Waksal founded [[ImClone Systems]] in 1984. The company was engaged in several research and development projects before filing its first [[Biologic License Application]] with the FDA in 2001. When it won the rights to develop Erbitux, a cancer antibody, the drug's clinical success caused ImClone's stock to reach a high of $70 a share. In September 2001, [[Bristol-Myers Squibb]] was intrigued enough by Erbitux to sign a $2 billion deal with the company in return for the marketing rights to the drug.<ref name=app>{{cite news|url=https://www.nytimes.com/2004/02/13/business/technology-imclone-cancer-drug-behind-martha-stewart-trial-is-approved-by-fda.html|title=Technology; ImClone Cancer Drug Behind Martha Stewart Trial Is Approved by F.D.A.|newspaper=The New York Times|first=Andrew|last=Pollack|date=February 13, 2004|access-date=August 29, 2016}}</ref> In December 2001, however, the FDA issued a ''Refuse to File''<ref>{{cite web|title=Refusal to File Procedures for Biologic License Applications|url=https://www.fda.gov/BiologicsBloodVaccines/GuidanceComplianceRegulatoryInformation/ProceduresSOPPs/ucm073474.htm|publisher=US Department of Health and Human Services|access-date=9 December 2012}}</ref> decision effectively turning down ImClone's application due to concerns about the structure of the clinical trials.<ref name=NYT/> In 2004, Erbitux was approved by the FDA.<ref name=app/> In 2008, the drug generated over $1.5 billion in sales and was credited with aiding thousands of cancer patients. That same year, ImClone was sold to [[Eli Lilly and Company]] for $6.5 billion.<ref name=nymag>{{cite magazine|url=http://nymag.com/news/features/55340/index1.html|title=Sam Waksal was Right All Along* |magazine=New York Magazine|first=Robert|last=Kolker|date=March 15, 2009 |access-date=August 29, 2016}}</ref>

==Criminal activity and conviction==
{{Main|ImClone stock trading case}}
Waksal became aware of the FDA's rejection on Christmas Day 2001. Unable to get the FDA to reconsider, ImClone began drafting a press release announcing the Erbitux rejection. This was due to be released at the close of business on December 28. Until then, under federal securities law, Waksal was barred from selling his ImClone stock or telling anyone about the pending rejection.  However, public release of the Erbitux rejection would expose Waksal to a number of financial problems beyond the near-certainty of ImClone's stock sliding. For example, Waksal had pledged a [[warrant (finance)|warrant]] to buy ImClone shares as collateral for a loan from [[Bank of America]] despite having already executed the warrant in 2000. If Bank of America discovered the warrant was no longer valid, Waksal could be charged with [[bank fraud]]. He tipped off several of his friends and family to sell their ImClone stock. When Waksal's broker at [[Merrill Lynch]], Peter Bacanovic, became aware of the pending rejection, he alerted their mutual friend, [[Martha Stewart]], that ImClone was about to lose a good deal of its value.<ref name=Stewart/>

Waksal was arrested June 12, 2002 on [[insider trading]] 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 (crime)|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.<ref>{{cite news|url=https://www.wsj.com/articles/SB1046709818588090280|title=Samuel Waksal Pleads Guilty to Evading Tax on Artwork|newspaper=The Wall Street Journal|first=Kara |last=Scannell |date=March 4, 2003 |access-date=September 5, 2016}}</ref>

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. Waksal wanted to go to [[Federal Prison Camp, Eglin]], but instead he went to [[Federal Correctional Institution, Schuylkill]].<ref>Rose, Lacey. "[https://archive.today/20120916094604/http://www.forbes.com/2006/04/17/best-prisons-federal_cx_lr_06slate_0418bestprisons.html Best Places to Go to Prison]." ''[[Forbes]]''. April 17, 2006. Retrieved on January 10, 2010.</ref> He was later transferred to the [[Federal Correctional Institution, Milan]].<ref name=nymag/> On February 9, 2009, Waksal, [[Federal Bureau of Prisons]] (BOP) # 53803-054, was released from BOP custody.<ref>"[http://www.bop.gov/iloc2/InmateFinderServlet?Transaction=NameSearch&needingMoreList=false&FirstName=Samuel&Middle=&LastName=Waksal&Race=U&Sex=U&Age=&x=0&y=0 Samuel Waksal] {{Webarchive|url=https://web.archive.org/web/20101105181825/http://www.bop.gov/iloc2/InmateFinderServlet?Transaction=NameSearch&needingMoreList=false&FirstName=Samuel&Middle=&LastName=Waksal&Race=U&Sex=U&Age=&x=0&y=0 |date=2010-11-05 }}." [[Federal Bureau of Prisons]]. Retrieved on January 10, 2010.</ref>

==Kadmon Pharmaceuticals==
In 2009, upon his release from prison Waksal began fundraising and launched the company [[Kadmon Pharmaceuticals]] in New York City.<ref>{{cite web|url=http://www.fiercebiotech.com/biotech/waksal-s-latest-biotech-play-reportedly-trying-to-go-public-after-two-misfires|title=Waksal's Latest Biotech Play is Reportedly Trying to go Public After Two Misfires|publisher=FierceBiotech|first=Damian |last=Garde |date=February 2, 2016 |access-date=September 5, 2016}}</ref><ref>{{cite news|url=https://www.nytimes.com/2010/11/01/business/01waksal.html|title=ImClone Ex-Chief Embarks on New Biotech Venture|newspaper=The New York Times|first=Andrew |last=Pollack |date=October 31, 2010|access-date=September 5, 2016}}</ref> Waksal was forced to step down from the CEO position in 2014 as the company planned an [[initial public offering|IPO]], because his sentence also ruled that he was banned from serving as an officer or director to any public company for life. With Waksal leaving the role, his brother Harlan began serving as CEO.<ref>{{cite news|url=https://dealbook.nytimes.com/2014/09/25/sam-waksals-new-biotech-venture-tests-investor-forgiveness/|title=Sam Waksal's New Biotech Venture Tests Investor Forgiveness|newspaper=The New York Times|first=Robert|last=Cyran|date=September 25, 2014 |access-date=September 5, 2016}}</ref> Waksal remained with the company and transitioned into the role of Chief of Innovation.<ref>{{cite web|url=https://www.cnbc.com/2016/02/02/waksals-kadmon-said-to-plan-ipo-without-waksal.html|title=Waksal's Kadmon Said to Plan IPO, Without Waksal|publisher=CNBC|first=Meg |last=Tirrell|date=February 2, 2016 |access-date=September 5, 2016}}</ref> In February 2016, Waksal left the Kadmon Pharmaceuticals but remained a shareholder in the company. In June 2016, the company announced it had filed the paperwork to undergo an [[IPO]].<ref>{{cite web|url= http://www.xconomy.com/new-york/2016/06/13/kadmon-seeks-ipo-with-unusual-terms-that-benefit-waksal-debt-holders/#|title=Kadmon Seeks IPO With Unusual Terms That Benefit Waksal, Debt Holders|first=Alex |last=Lash|work=Xconomy |date=June 13, 2016 |access-date=September 5, 2016}}</ref><ref>{{cite web|url=http://www.fiercebiotech.com/sam-waksal-exited-kadmon-25m-severance-deal-ahead-ipo|title=Sam Waksal Exited Kadmon With $25M Severance Deal Ahead of IPO|publisher=FierceBiotech|first=John |last=Carroll |date=June 10, 2016 |access-date=September 5, 2016}}</ref><ref>{{cite web|url=http://fortune.com/2016/06/17/sam-waksal-theranos-scam/|title=Convicted Pharma Fraudster Waksal Calls Theranos a 'Scam'|publisher=Fortune|first=Sy |last=Mukherjee |date=June 17, 2016 |access-date=September 5, 2016}}</ref> In July 2016, the company raised $75 million in its IPO.<ref>{{cite news|url=https://www.wsj.com/articles/redemption-on-offer-as-disgraced-executive-sam-waksals-startup-readies-ipo-1469562708|title=Redemption on Offer As Disgraced Executive Sam Wakssal's Startup Launches IPO|newspaper=The Wall Street Journal|first=Gregory |last=Zuckerman|date=July 26, 2016|access-date=September 5, 2016}}</ref>

==Personal life==
Waksal is divorced from Cynthia F. Waksal; they had two children:<ref name=ElanaWedding>{{cite news|title=Weddings; Jarrett Posner and Elana Waksal |newspaper=[[The New York Times]]|date= March 1, 1998|url=https://www.nytimes.com/1998/03/01/style/weddings-jarrett-posner-and-elana-waksal.html  |access-date=March 15, 2018}}</ref> Aliza and Elana.<ref name=Wacky>{{Cite web|last=Blecher |first=Ian |title=The Wacky Dr. Waksal|publisher=[[observer.com|Observer]]|date= April 22, 2002|url=http://observer.com/2002/04/the-wacky-dr-waksal/|access-date=March 15, 2018}}</ref> His daughter, Elana, is married to Jarrett Posner, son of [[Steven Posner]] and grandson of [[Victor Posner]].<ref name=ElanaWedding /> Waksal dated [[Martha Stewart]]'s daughter, [[Alexis Stewart|Alexis]], for several years prior to his criminal conviction.<ref name="NewYorkerToobin">{{cite magazine|last1=Toobin|first1=Jeffrey|title=A Bad Thing|url=http://www.newyorker.com/magazine/2004/03/22/a-bad-thing|access-date=2 February 2016|magazine=The New Yorker|date=22 March 2004}}</ref>  As of 2016 he was reported to hold executive positions with the New York Biotechnology Association and the New York Council for the Humanities, and is also a member of the board of advisors of [[Rockefeller University]].<ref>{{cite web |url=https://www.bloomberg.com/research/stocks/private/person.asp?personId=325884&privcapId=296406|title=Executive Profile Samuel D. Waksal Ph.D., Director, Pharmos Corp. |website=[[Bloomberg News]] |access-date=25 October 2016}}</ref>

==See also==

*[[Chip Skowron]], hedge fund portfolio manager convicted of insider trading

==References==
{{Reflist}}

== External links ==
* [https://www.nytimes.com/2003/03/03/business/03CND-MARTHA.html ImClone Founder Pleads Guilty to Avoiding Sales Taxes], ''The New York Times'', March 3, 2003
* [https://web.archive.org/web/20060325232402/http://sfgate.com/cgi-bin/article.cgi?f=%2Fnews%2Fa%2F2003%2F06%2F10%2Fnational1256EDT0601.DTL ImClone founder Waksal sentenced to 7 years in prison], ''San Francisco Chronicle'', June 10, 2003
* [https://www.cbsnews.com/news/sam-waksal-i-was-arrogant-02-10-2003/ Sam Waksal: I Was Arrogant], ''CBS News'', October 2, 2003
* [http://reason.com/hod/bd062502.shtml ''Free Samuel Waksal''] argues that Waksal's insider trading should not be considered a crime and that he does not belong in jail
* [http://www.campaignmoney.com/biography/sam_waksal.asp Sam Waksal Political Contributions]


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{{DEFAULTSORT:Waksal, Sam}}
[[Category:1947 births]]
[[Category:Living people]]
[[Category:French emigrants to the United States]]
[[Category:American immunologists]]
[[Category:20th-century American Jews]]
[[Category:American health care chief executives]]
[[Category:American people convicted of perjury]]
[[Category:American prisoners and detainees]]
[[Category:American pharmaceutical industry businesspeople]]
[[Category:Corporate crime]]
[[Category:People convicted of insider trading]]
[[Category:American people convicted of fraud]]
[[Category:American businesspeople convicted of crimes]]
[[Category:American people convicted of obstruction of justice]]
[[Category:Prisoners and detainees of the United States federal government]]
[[Category:Ohio State University alumni]]
[[Category:21st-century American Jews]]