ImClone Systems founder Sam Waksal was sentenced to seven years and three months in prison on Tuesday for an insider-trading scandal that ensnared his family and threatens Martha Stewart and her home decorating empire.
He also was ordered to pay more than four (M) million US dollars in fines and back taxes.
US District Judge William H. Pauley rejected Waksal's plea for a lighter sentence based on ImClone's cancer research, Waksal's humanitarian work and the intense media interest surrounding the case.
Earlier, just before he was sentenced, the 55-year-old had apologised to his family and former employees.
The judge ordered Waksal to report to federal prison on July 2.
Until then, he must remain in his Manhattan apartment - except for appointments with his lawyers - and submit to electronic monitoring.
After being sentenced, Waksal hugged his brother and his 80-year-old father in the courtroom.
He did not make a statement.
Waksal pleaded guilty in October to six counts, including securities fraud, bank fraud, conspiracy to obstruct justice and perjury.
The charges cover insider trading and the evasion of one point two (M) million dollars in sales taxes on fine art.
Assistant US Attorney Michael Schachter asked for more than seven years, saying Waksal "told numerous, separate and distinct sets of lies" surrounding his family's sale of ImClone stock.
Waksal faced a maximum of up to 75 years in prison; federal sentencing guidelines call for six to seven years.
Waksal admitted to a scheme in which he tipped his daughter, Aliza, to dump ImClone stock just before it plunged in value on news that the Food and Drug Administration would not review his company's experimental cancer drug.
Stewart, a close friend of Waksal, was indicted last week on five federal counts - including obstruction of justice, conspiracy and lying to investigators - tied to her December 2001 sale of nearly four thousand ,000 shares of ImClone stock.
She pleaded innocent.
A week ago, ImClone stock surged after European researchers reported that the cancer drug, Erbitux, does appear to be effective, helping some of the sickest colon cancer patients live longer.