Investigators Want Details on ImClone CEO's Trades

The congressional committee investigating ImClone Systems (IMCL Quote) is asking the CEO Sam Waksal to provide more information about his, and his family's, trading activities in the company's stock.

In a letter written to Waksal and released Thursday afternoon, the House Energy and Commerce Committee says that over the past several weeks, ImClone's attorneys have been asked to provide information about Waksal's relatives trading ImClone shares in the days before U.S. drug regulators rejected the Erbitux approval application.

"In addition, the Committee staff verbally requested that O'Melveny (ImClone's attorneys) obtain answers as to whether you controlled or had working control over third-party accounts trading in ImClone shares, and whether you controlled or participated in any off-shore accounts trading in ImClone shares," the letter states.

The committee says that to date, Waksal has not responded to its requests.

On March 14, The New York Times reported that Waksal's daugher, Aliza, sold $2.5 million in ImClone stock on Dec. 27, the day before the Food and Drug Administration issued its refuse-to-file letter for Erbitux.

The committee is now asking Waksal again to provide information about his family's trading activities in ImClone's stock. The committee wants Waksal to turn over the names and addresses of extended family members and all records relating to his financial accounts, including records detailing his debts or any corporate shells he may own or control.

House investigators also want to look at Waksal's appointment calendar, financial records and logs of telephone conversations for the time period covering Sept. 1, 2001, through Jan. 4, 2002.

Waksal is being asked to produce this information by April 1.

Separately, the House committee is asking the FDA to brief it on all meetings, past and future, with ImClone and its partner Bristol-Myers Squibb (BMY Quote) related to Erbitux.

Shares of ImClone closed Thursday up $2.01, or 8%, to $27.