Martha Stewart
description
Transcript of Martha Stewart
THE TRIAL OF MARTHA STEWART
By: Julia’ Lanham
Kaitlyn Georgette
Blaze Platt
Colby McClary
BACKGROUND OF MARTHA STEWART
Personal: Yale Law School Stockbroker Wall Street Martha Stewart Living magazine
Celebrity: Publicity Woman of success Hard working; talented
Famous for: Cooking Arts/crafts Household
PEOPLE INVOLVED IN MARTHA’S CASE
Douglas Faneuil Assisted Peter Bacanovic at Merrill Lynch in mid-
Manhattan Peter Bacanovic
Stockbroker of Stewart, Waksal, and Waksal’s daughter Old friend/employee of Waksal
Samuel Waksal Co-founder of ImClone Systems (biopharmaceutical
company) Ann Armstrong
Martha Stewarts’s administrative assistant Robert G. Morvillo
Martha Stewart’s Attorney David Apfel
Baconovic’s attorney
DECEMBER 27TH, 2001 Franeuil took a call from Aliza
WaksalSell 39,472 ImClone Shares for $2,472,837
Waskal transferFather-daughter
Illegal insider informationPhone callsAssistant messages
$58 per share 3,928 shares
ISSUES Erbitux - ImClone
FDA would reject it on the 28th
Price dropWaksal found out the 26th
Material insider information - WaksalDec. 21st “blackout period”
No trading/selling
SUSPICIONS Merrill Lynch
ImClone trades to FaneuilSecurities and Exchange Commission(SEC)
Franeuil called BaconovicMartha Stewart - prearranged to reduce
taxes“Pre-existing agreement to sell ImClone if
price fell below $60 a share” Bacanovic
Plan
FEBRUARY – APRIL 2002 INTERVIEWS SEC, FBI, and U.S. Attortney
Denied Baconovic and FaneuilBacanovic testifiedBacanovic bribed Faneuil
DURING THE CASE Waksal resigns as CEO
Arrested Martha Stewart shares Merill Lynch and Bacanovic
Franeuil tells true story Indictments filed 1 ½ years later
Conspiracy to conceal evidence Obstruction of justice; making false statements
Martha Securities fraud Possible 30 years in prison and $2 million fine
Baconovic Perjury for altering worksheet Possible 25 years in prison and $1.25 million fine
SEPARATE CIVIL ACTION SEC charged both
insider training Stewart step down Salary of $900,000 and bonus of $500,000
Released without bail
COURT ACTION Martha Stewart’s lawyers:
Not in the wrongMisunderstanding
Martha’s plea Seymourr’s agrument:
Secret tip from BaconovicCover up for protectionSuspicions
THE REAL STORY WITH EVIDENCE Faneuil – star witness
Told about Sam WaksalBaconovic’s attorneyMartha’s attorney
Ann ArmstrongCried
Expert Ink Analyst - U.S. Secret ServiceTest
MARTHA’S LAST HOPE Minimal defense
Did not take stand Judge dismiss allegationsConspiracy charge let goGood person
OUTCOME Martha and Baconovic
guilty on 4 counts Faneuil and Armstrong
credible Martha
5 months imprisonment 5 months house arrest $30,000 fine
Baconovic 5 months imprisonment 5 months house arrest $4,000 fine
Faneuil no prison $2,000 fine
OUTCOME (CONTINUED)
September 1st 2005 2006
Over turn conviction SEC
agreed to 5 year ban and $195,081 fine March 2007 ImClone ended up closing Dec. 31st;
drop 16% on shares
LOVERS AND HATERS For Martha Stewart
CynicsFeminists
Against Martha StewartWall Street JournalScott Turow
MARTHA STEWART TODAY Celebrity Today:
The ApprenticeThe Martha Stewart Show; 2005Martha Stewart Omnimedia
WORKS CITED“Martha Stewart.”2001. Biography.com 29
Sep 2011, 11:22 http://www.biography.com/people/martha-stewart-9542234
Steiner, John, and George Steiner. Business, Government, and Society. 13th. New York: McGraw-Hill Irwin, 2012. 229-237. Print.