By Gail Appleson and Paul Thomasch NEW YORK (Reuters) - Domestic trendsetter Martha Stewart, who built a media empire on tips for gracious living, was found guilty on Friday of lying to investigators over a suspicious stock sale and could face years in jail.
Wearing a black pants suit, Stewart stood in the courtroom but showed no emotion as she heard the verdict, which ended a seven week trial. She later said she would appeal.
The eight women and four men returned their verdict on the third day of deliberations. The verdict came after a lunch break during which rumors of an imminent conclusion of the case sent stock in Stewart's own company Martha Stewart Living Omnimedia Inc. (MSO.N: Quote, Profile, Research) sharply higher.
But the shares dropped sharply after the verdicts and were down nearly 23 percent in late afternoon trading on the New York Stock Exchange.
Stewart was found guilty of one count of conspiracy, two counts of making false statements and one count of obstruction of agency proceedings. She will be sentenced on June 17.
Each count carries a possible prison term of five years and a $250,000 fine, although legal experts do not expect Stewart to receive the stiffest sentence.
In the trial, related to her suspicious sale of stock in biotech company ImClone Systems Inc. (IMCL.O: Quote, Profile, Research) , her co-defendant, former stockbroker Peter Bacanovic, was found guilty of four of the five counts against him.
Stewart, 62, told fans that she will appeal.
"I am obviously distressed by the jury's verdict but I continue to take comfort in knowing that I have done nothing wrong," she said in a letter posted on her personal Web site, www.marthatalks.com.
"I will appeal the verdict and continue to fight to clear my name. I believe in the fairness of the judicial system and remain confident that I will ultimately prevail."
As the judge polled the jurors individually, Stewart looked from juror to juror, glancing down at the verdict sheets and tossed her hair from her eyes but remained stoic. Continued ...
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Maybe she can show other inmates how to decorate their cells or show them how to cook.If this was an average person...they probably would have been in jail already.
Posts: 5682 | From: Dearborn,Mi. | Registered: Feb 2002
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quote:Originally posted by 2002Z4CSS: Maybe she can show other inmates how to decorate their cells or show them how to cook.If this was an average person...they probably would have been in jail already.
yes. whats ironic, is that she will appeal, and her appellete trial will get almost no news coverage. As such, she will probably be able to cut a deal, maybe pay a fine, and get off scot free. Personally, I would start watching her show if it was filmed from her prison cell.
"With this contraband rock hammer, and these cement block walls, I make a decorative arch that holds family pictures, my cellmate's razor and shank collection, and the first aid kit for when i get slapped around by the other prisoners. I really treasure it."
posted
yes. whats ironic, is that she will appeal, and her appellete trial will get almost no news coverage. As such, she will probably be able to cut a deal, maybe pay a fine, and get off scot free. Personally, I would start watching her show if it was filmed from her prison cell.
I totally agree FC. Posts: 2841 | From: Westland, MI | Registered: Apr 2003
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posted
Looks like black and white stripes will be in this year .
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She'll never serve a day ........... will be tied up in appeal for years until they find a judge who will throw out all the convictions
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Just wanted to post this, from the CNN Money article:
quote:She avoided a loss of about $51,000 by selling nearly 4,000 shares of ImClone (IMCL: Research, Estimates) stock on Dec. 27, 2001, rather than the next trading day, when the stock tumbled after regulators rejected the company's application for a key cancer drug.
Prosecutors argued that Stewart sold her ImClone stock only after Bacanovic told his assistant, Douglas Faneuil, to tip her off that ImClone founder Sam Waksal was trying to sell. Stewart and Bacanovic had told investigators they had an arrangement to sell once the stock fell to $60.
Bacanovic was broker to both Stewart and Waksal, who is serving a seven-year prison term after pleading guilty to securities fraud over his family's sale of ImClone shares.
I'm sorry, but this is miniscule compared to what happened at Enron, WorldCom and a number of others.
Posts: 1907 | From: I hope I'm not repeating myself. Again. And Again. Stop picking on me! Waaahhh!! | Registered: Feb 2000
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I think the conviction was valid, but that the judge should step back and look at the bigger picture when it comes time to pass sentence. I think the punishment should fit the crime. Many people, myself included, have a very low tolerance for the corporate shennanigans that brought down Enron, Worldcom, etc. The bigger fish by far are the Kozlowski's, Fastow's, and Ebbers of the world. These guys have done far more damage than Ms. Stewart and they deserve to have the key tossed away when they eventually go to jail. What's kind of a wild card now is the future of her company and its employees. It will be a rough road ahead for them and through no fault of their own, many will no doubt lose their jobs as the company struggles to stay viable.
Martha Stewart has been punished where it hurts a person like her the most. She's lost millions as result of this scandal. Now, being a convicted felon, her reputation is forever ruined, her television programs are being pulled off the air, and she'll likely lose her position with her company. Being a convicted felon will also prevent her doing things with her life that those of us who play by the rules can do. She's lost far more than she ever would have saved by selling that stock with inside info. While I don't feel sorry for her at all, I think that a lengthy prison sentence would be almost gratuitous at this point and put in context with the much more aggregious crimes of her peers, not really necessary, unless of course these other guys are going to get life without parole... I think there should be some prison time for sure, but I'm thinking a few months as opposed to many years.
She's a victim of her own ego and sense of invulnerability that comes with great wealth and power. Now she's an object of ridicule. That will hurt more than any prison sentence, no matter how long it is. Just MHO.
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quote:Originally posted by agmSS: She's a victim of her own ego and sense of invulnerability that comes with great wealth and power. Now she's an object of ridicule. That will hurt more than any prison sentence, no matter how long it is. Just MHO.
Very well said!! I agree, however not sure prison is warranted in this case....but yes, her "image" is forever ruined, which is a far worse fate than anything else could have been.
Posts: 3236 | From: Dallas, Texas | Registered: Nov 2002
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