Martha Stewart

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Martha Stewart, founder and CEO of her own multimillion dollar corporation, Martha Stewart Living Omni media was indicted, on charges of lying to investigators, securities manipulation, and obstruction of justice. She was sentenced to five months in a West Virginia state woman’s prison and 5 months on house arrest. Originally it was said that Ms. Stewart was indicted on charges of insider trading, however obviously those charges could not be proven. After a year and a half investigation, she was indicted on totally different charges. Ms. Stewart’s stock broker at the time Mr. Bacanovic, who was employed at Merrill Lynch Investment Company, was also indicted on the same charges. Mr. Bacanovic had his assistant call and give Ms. Stewart non-public information about one of his companies other clients and how the stock in this particular company, Imclone biotech would be dropping the next day. After receiving this information Ms. Stewart authorized her stock broker to sell her stocks in Imclone biotech. She had almost 4,000 shares of stock in the biotech company. This company was said to be on the verge of marketing a new drug that would have a big break in cancer treatment. However it was found out that the Food and Drug Administration would not be approving this particular drug. With this new drug being the companies leading product to lure investors, the President of Imclone knew that the stocks would drop once the announcement was made public. Around the end of December 2001, Imclone’s CEO Sam Waksal, also a client of Merrill Lynch started illegally transferring his stock to his daughter. The intent was to have the daughter start selling off the stock before the FDA made its announcement about not supporting the d... ... middle of paper ... ...ue to her public statements of no wrong doing. When Ms. Stewart was indicted and realized what affect this trial was having on her beloved company, she resigned as chairwoman and chief executive officer. I believe if Ms. Stewart would have not lied and admitted to wrong doings, that she would have gotten off lighter then she already did with a stack full of lies. Being the beloved Public persona of home decorating that she was, if she would have appealed to her consumers and asked forgiveness I think that the most Ms. Stewart would have paid was a fine. All the lies and cover up only served to give her jail time and lose more money than she was trying to originally save when she sold the stocks before hand. Having really looked in to this case from several different views, it was clear that if Martha Stewart would have told the truth all would have been forgiven.

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