U.S. May Seek Longer Sentence for Waksal

Federal prosecutors plan to ask a judge to lengthen the proposed prison sentence of ImClone Systems Inc. founder Samuel D. Waksal, who pleaded guilty to insider trading and five other crimes, people familiar with the government’s case said.

Waksal is scheduled to be sentenced in January by U.S. District Judge William Pauley in New York, where U.S. Atty. James Comey will argue for more than the recommended seven to nine years. Prosecutors reportedly will produce evidence showing that Waksal is guilty of seven charges to which he didn’t confess, the people said.

Comey’s strategy provides him a chance to extend Waksal’s punishment without risking a lengthy court trial, criminal lawyers said.

A decision by Pauley to increase Waksal’s sentence would probably spur prosecutors to drop the seven remaining charges, people familiar with the government’s tactics said. The unproved charges relate to an alleged conspiracy Waksal had with his father and a daughter to commit insider trading.

ImClone shares gained 77 cents to $9.75 on Nasdaq.