My close bond with Peter Bacanovic spans sixteen years, a period marked by daily conversations, often up to six times a day. For twenty long months, the shadow of the news—newspapers and television broadcasts—loomed large, a source of dread for him. Each morning, he’d turn to me for a gentle summary, a difficult task given the circumstances. But last Friday, amidst the courtroom chaos, surrounded by his parents and friends offering hugs and whispered apologies from his lawyers, I realized this daily ritual had come to an end.
It was June 14, 2002, just two days after Sam Waksal’s dramatic arrest. Peter and I were in London, visiting friends, when a headline in the Times business section identified him as Martha Stewart’s broker. I distinctly remember overhearing him on the phone with Merrill Lynch lawyers, recounting a story that has remained consistent ever since, and one I firmly believe despite the verdict: He and Martha had a clear agreement to sell her ImClone stock should it dip below $60. The trade, he maintained, was executed by his junior assistant, Doug Faneuil, who had communicated directly with Martha. Peter was not the one who initiated or placed that trade.
However, a few days later, Faneuil, in a move that felt like betrayal, shifted the blame onto Peter during discussions with Merrill Lynch lawyers. This single act set in motion a chain of events that would profoundly disrupt my friend’s life. Adding insult to injury, that very evening, Doug reportedly used Peter’s tickets to take his boyfriend to the ballet, a stark contrast to the turmoil Peter was facing.
From that moment, Peter became a public spectacle, a target of relentless media attention. Paparazzi became a constant presence outside his Upper East Side townhouse, forcing him to seek refuge on a friend’s couch in Sutton Place for months. Even a simple encounter with a dog walker outside his friend’s apartment brought the unwanted spotlight, with the walker asking, “Hey, aren’t you Martha Stewart’s broker?”
Peter’s quick wit came to the fore as he deflected, “Are you kidding? That guy’s much older than me—he’s in his forties!” While he was actually 41, his youthful appearance allowed him to momentarily escape the unwelcome recognition.
To escape the intense scrutiny, Peter sought temporary reprieve in Los Angeles, finding anonymity amongst the city’s many handsome figures. However, the trial brought him back to New York, grounding him in the epicenter of the storm. He traded upscale dining for the comfort of a small Greek restaurant in his neighborhood. There, a stream of loyal friends made their way to offer support and encouragement, including TV producer Doug Cramer of Dynasty fame. While Peter was typically the generous host, this time, friends were eager to take care of the bill, a small gesture of solidarity.
Quiet dinners and lunches became frequent shows of support. Hosts like Nan and Tommy Kempner, Rufus and Sally Albemarle, and Louise Grunwald opened their homes. Louise Grunwald remarked on the overwhelming support for Peter during this trying time.
For five weeks, the front left row of the courtroom became a familiar gathering spot for Peter and Martha’s families and friends, a space reserved for the defendants’ guests. This shared space also accommodated figures like Bill Cosby and Brian Dennehy. A small comfort amidst the tension was the navy cushions provided by Martha, collected daily by an assistant into canvas tote bags monogrammed with “ms” in vibrant orange and pink.
Upstairs, in adjacent private lunchrooms on the fourth floor, a stark contrast in provisions highlighted the class divide. Peter’s room offered simple chicken salad and cheesecake. Martha’s room, in contrast, resembled a gourmet deli, featuring a spread from Russ & Daughters, the renowned Lower East Side establishment often featured on her TV show. Brisket, corned beef, and pastrami sandwiches, alongside coleslaw and green-tomato pickles, were readily available. Martha herself moved between the rooms, engaging with Peter’s concerned parents and encouraging everyone to sample the macaroons.
As the trial neared its conclusion, a palpable sense of collective defiance grew. Peter’s mother, Helen Bacanovic, a retired doctor, expressed her displeasure with Andrea Peyser, the New York Post columnist known for her harsh commentary, referring to her as “that venomous cobra.”
I was scheduled to testify in Peter’s defense, a chance I was ultimately denied. I deeply regret not having the opportunity to convey to the jury the essence of Peter: a genuinely good person unfairly targeted, his misfortune stemming from his association with Martha’s prominent status. He simply did not deserve this ordeal.
