Ms Pasternak said the conversation occurred when the two were on holiday in Mexico.
BBC: NEWS | Business | Friend's testimony hits Stewart
Sources say they are trying to gain the cooperation of Martha's friend Mariana Pasternak, who was with her on the day of the ImClone stock sale.
CNN: Martha's Untidy Story
Ms Pasternak said she recalled Ms Stewart saying Mr Waksal "was selling or trying to sell his stock and his daughter was selling or trying to sell her stock".
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