ImClone, a biotechnology company co-founded by Samuel Waksal, who is a personal friend of Martha Stewart, submits a Biologics Licensing Application (BLA) for its colon cancer drug Erbitux. A BLA is the first step in the getting a drug approved by the Food and Drug Administration. The FDA has 60 days to evaluate the application. If the agency accepts it, it will review the drug for approval.

Shares of ImClone hit their highest price of $75.45 since an October 2000 stock split. Martha Stewart says she has a conversation with her broker, Peter Bacanovic, regarding which stocks in her portfolio she wants to sell around the time when ImClone was $74 a share.

Peter Bacanovic sells Martha Stewart's stock in 22 companies.

12/21/01 Peter Bacanovic prints out a worksheet from Martha Stewart's portfolio reflecting the market value of each stock as of its closing price on 12/20. Bacanovic's handwritten notes in blue ink are made in the margins of the worksheet.

Sam Waksal learns that the FDA will be rejecting the BLA for Erbitux, according to the SEC.

Douglas Faneuil contacts Peter Bacanovic, who is vacationing in Miami, to tell him that Sam Waksal and some of Waksal's family members have sought to sell all their shares of ImClone, worth $7.3 million. Aliza Waksal, Waksal's daughter, sells 39,472 shares for almost $2.5 million. Sam Waksal transfers his 79,797 shares to Aliza Waksal and those shares are sold for approximately $4.9 million. According to prosecutors, Peter Bacanovic contacts Douglas Faneuil and instructs him to tell Martha Stewart about the Waksal shares.

Peter Bacanovic calls Martha Stewart's office and leaves a message, which her assistant records in the log, "Peter Bacanovic thinks ImClone is going to start trading downward."

Martha Stewart calls Peter Bacanovic's office. According to prosecutors, she talks to Douglas Faneuil.

Martha Stewart sells her 3,928 shares of ImClone at an average price of $58.43.

FDA publicly discloses its decision to turn down ImClone's BLA for Erbitux, citing poorly designed clinical trials. The information is released to the public after the close of business.

ImClone's sinks to a low of $43.35 a share. Had Martha Stewart sold her stock at this price, she would have netted approximately $51,000 less.

Douglas Faneuil is interviewed by lawyers with the SEC via telephone, as the the SEC, FBI and federal prosecutors launch a probe into the sale of ImClone stock prior to the FDA announcment.

Peter Bacanovic is interviewed by the SEC via telephone, days after the SEC, FBI and federal prosecutors launch a probe into the sale of ImClone stock prior to the FDA announcment. Bacanovic tells investigators about a "selling discussion" he had with client Martha Stewart, in which the two decided that she would sell ImClone when it dropped to $60 a share. He also reported that Martha Stewart instructed him to sell the stock on Dec. 27 because the price dipped below $60.

Martha Stewart and Peter Bacanovic meet for breakfast, according to court documents.

The FBI and U.S. Attorney's Office contact Martha Stewart's office to set up an interview for Feb. 4. A call is placed from Martha Stewart's cell phone to Peter Bacanovic's cell phone, according to phone records.

The SEC issues an order for Merrill Lynch to produce documents regarding Martha Stewart's accounts

Merrill Lynch informs Peter Bacanovic of the SEC's order.

Peter Bacanovic turns over his "selling discussion" worksheet to Merrill Lynch managers for the SEC probe. Authorities claim he altered the worksheet prior to submitting it, adding the notation "@60" in the margin next to ImClone.

Martha Stewart changes the entry in her phone log from "Peter Bacanovic thinks ImClone is going to start trading downward" to "Peter Bacanovic re imclone [sic]." She later tells her assistant to revert the wording to its original state.

A call is placed from Peter Bacanovic's cell phone to Martha Stewart's cell phone at 7:09 a.m., phone records indicate. Martha Stewart meets with investigators. She claims that she and Peter Bacanovic arrived at an agreement to sell ImClone when it dropped to $60 a share, and that the conversation occurred when ImClone shares were at about $74. Investigators say ImClone stock was at that price on Dec. 6, 2001. Martha Stewart also states she did not know if the message Peter Bacanovic left on Dec. 27 was recorded in her assistant's phone log, and that she instructed Peter Bacanovic to sell the stock merely because it had dropped below $60.

Several calls are placed from Martha Stewart's home to Peter Bacanovic's office, phone records indicate.

Peter Bacanovic testifies that on Dec. 20, 2001, he and Martha Stewart had a selling discussion, and that his notes on the worksheet next to ImClone indicate that the stock should be sold "@60." He also testifies that after Dec. 28, 2001, he did not discuss the ImClone stock with Martha Stewart or reveal what questions he was asked by investigators. A call is placed from Martha Stewart's home to Peter Bacanovic's office.

Martha Stewart is nominated for the board of directors of the New York Stock Exchange.

Douglas Faneuil is again interviewed by lawyers with the SEC via telephone.

Investigators interview Martha Stewart via telephone. She tells them she does not recall discussing Sam Waksal nor the sale of Waksal's shares with Peter Bacanovic during their Dec. 27 conversation. She also states that the "selling discussion" occurred in November or December 2001.

Sam Waksal resigns as President and CEO of ImClone.

The House Energy and Commerce Committee, which is investigating ImClone trading, announces it is probing Stewart's stock sale.

The Wall Street Journal publishes an article breaking the story about Martha Stewart's ImClone stock sale. In the article, Stewart's lawyers provide the $60 predetermined price explanation for her stock sale.

Samuel Waksal is arrested for insider trading, charged with selling his shares and advising family members to sell prior to the FDA's announcement of the Erbitux BLA decision. Following Waksal's arrest, Martha Stewart issues a statement to explain "if the ImClone stock price were to fall below $60, we would sell my holdings."

Prior to speaking at a conference for investors, Martha Stewart releases another public statement in which reiterates her reasons for the sale and said that it "was based on information that was available to the public that day."

Douglas Faneuil tells Merrill Lynch executives and subsequently federal authorities that he passed along information regarding the sale of the Waksal shares to a "tippee," according to court papers, who sold the stock on Dec. 27 for approximately $228,000.

Merrill Lynch suspends Peter Bacanovic and Douglas Faneuil after the investigation by federal authorities casts doubt on the purported agreement with Martha Stewart to sell ImClone shares when it dropped to $60.

During her regularly scheduled weekly appearance on CBS' Early Show, Martha Stewart speaks of the ImClone situation for the first time while demonstrating how to prepare a salad, saying "I will be exonerated of any ridiculousness."

Douglas Faneuil pleads guilty to receiving money -- in his case an extra week's vacation and a airline ticket, he says -- "for not informing." As part of his deal with prosecutors, Faneuil is expected to testify against Stewart and Bacanovic.

Martha Stewart resigns from the board of the New York Stock Exchange.

Martha Stewart and Peter Bacanovic are indicted. She resigns as CEO of her company, Martha Stewart Living Omnimedia.

Sam Waksal is sentenced to more than seven years in prison and $3 million in fines.

The FDA approves the BLA for Erbitux, which ImClone refiled in August.

First day of oral questioning of potential jurors in the trial of Martha Stewart and Peter Bacanovic scheduled in a federal Manhattan courtroom.

Lawyers present vastly different versions of events during opening arguments.

The defense successfully argues for more time before the government's star witness, Douglas Faneuil, is called to the stand after documents are turned over late by prosecutors. The documents in question revolve around a transcript of an FBI interview of Jeremiah Gutman, Douglas Faneuil's one-time lawyer, who said it was either Bacanovic or ImClone CEO Sam Waksal who ordered him to tip off Stewart. Prosecutors blame Gutman's age for his failure to remember, though defense lawyers say there is room for interpretation whether Faneuil himself muddled the distinction.

Douglas Faneuil takes the stand and implicates Bacanovic, but testimony ends for the day before he implicates Martha Stewart. Rosie O'Donnell appears in court to lend support to her friend, Martha Stewart.

Douglas Faneuil testifies he acted on orders from Bacanovic and told Stewart that Sam Waksal was unloading all of his ImClone shares. Faneuil said Stewart told him to sell her shares, and he executed the sale.

In his third day of testimony, Faneuil describes a rude, volatile Martha Stewart.

Defense lawyers cross-examine Faneuil during his fourth and final day on the stand. They present e-mails from Faneuil to his friends which depict him bragging about "putting Ms. Martha in her place." Martha Stewart's assistant, Ann Armstrong, takes the stand and breaks down in tears, prompting an early recess.

Martha Stewart's assistant, Ann Armstrong, says the domestic diva changed a phone log message from "Peter Bacanovic thinks ImClone is going to start trading downward," to "Peter Bacanovic re imclone." Armstrong adds that before Stewart even stepped away from her desk, she ordered her to change the message back to its original wording.

SEC investigator Helene Glotzer testified Stewart denied any recollection of information about the Waksal shares. Defense lawyers attempted to show Glotzer's testimony was biased during cross-examination.

ImClone drug Erbitux wins FDA approval.

The defense wins a small victory when the judge denies the government the ability to call expert witnesses to the stand that would help bolster the securities fraud charge against Stewart.

Judge Miriam Cedarbaum strikes another blow to prosecutors, ruling they cannot speculate what Stewart and Bacanovic talked about during phone conversations in early 2002, nor can they enter a Feb. 4, 2002 voicemail into evidence.

Former top lawyer for Martha Stewart Living Omnimedia takes the stand.

A forensic expert who examined a worksheet prepared by Bacanovic testifies the ink used to write "@60" next to the ImClone entry was different than the ink used on the rest of paper.

Martha Stewart's best friend, Mariana Pasternak, who was traveling with her to Mexico at the time of the infamous stock sale, testifies the domestic diva told her on Dec. 27, 2001, of learning Waksal was selling his ImClone shares. Prosecution rests.

The defense argues for some of the charges to be dismissed -- including the most serious lodged against Stewart, securities fraud. Judge Miriam Cedarbaum announces she is reserving decision.
Defense lawyers for Peter Bacanovic begin calling witnesses. Heidi DeLuca, Martha Stewart's business manager, testifies Stewart and Bacanovic had decided as early as November to sell ImClone when it dipped to $60 or $61. Lawyer Jeremiah Gutman offers brief testimony.
Bill Cosby appears in the courtroom to support Martha, and hands boxes of Jell-O to defense lawyers.

Stewart's defense lawyer Robert Morvillo announces that his famous client would not be taking the stand.

Bacanovic's defense rests without him testifying. Stewart's lawyers call one witness, Steven Pearl, a former Stewart attorney, and rest their case 45 minutes later.
Only days after taking the stand, defense witness Jeremiah Gutman, the former lawyer of Douglas Faneuil, dies at age 80 as he waits for a train in Westchester.

Closing arguments scheduled to begin.

Deliberations expected to begin.