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.