Martha

What a joke. On the evidence of a rat who did the same thing. For a practice that is endemic on Wall Street (if you doubt it, next time there is a big event check the stock’s volume to see if it went up the day before the release).

Martha probally just offened someone powerful. Maybe would not pay some off or sleep with some one!

Martha Stewart Gets 5 Months in Prison

NEW YORK - Martha Stewart was sentenced Friday to five months in prison and five months of home confinement for lying about a stock sale.

Just before her sentence was pronounced, Stewart asked the judge to “remember all the good I have done.”

“Today is a shameful today. It’s shameful for me, for my family and for my company,” she said.

U.S. District Court Judge Miriam Goldman Cedarbaum noted that she had sentenced Stewart on the bottom of the confinement range.

martha…rot in hell bitch.

tyco, enron, adelphia and all the others need to go down too.

martha is going to jail because she wasn’t in bed with bush.

jaystyles

I think Martha’s kinda hot for an older chick. Now if she’ll only marry me without a prenup. Britanny Spears is already taken.

[quote]jaystyles wrote:
martha…rot in hell bitch.

tyco, enron, adelphia and all the others need to go down too.

martha is going to jail because she wasn’t in bed with bush.

jaystyles[/quote]

Bull.

Martha is going to jail because of a prosecutor who wanted his name in the headlines.

BTW, she wasn’t convicted of insider trading or of cheating her shareholders. In fact, this crusade against her has cost her shareholders hundreds of millions of dollars, while she never cheated them of a penny.

Martha was convicted of lying to a federal agent, who was interrogating her while she was not under oath, concerning something she did that was not illegal in and of itself. I find that highly disturbing.

[quote]BostonBarrister wrote:
I find that highly disturbing.[/quote]

You and me both. America has this love affair with tearing people down.

[quote]CDarklock wrote:
BostonBarrister wrote:
I find that highly disturbing.

You and me both. America has this love affair with tearing people down. [/quote]

Yeah, never ceases to amaze me. Or, I guess at this point it never ceases to disappoint me.

I think a lot of people fail to realize (and the media fails to emphasize) that all the actualy fraud charges against her were dropped… In the end she was NOT EVEN CHARGED with any securities vialotions. You’d think at that point a prosecutor could just do the decent thing and admit defeat, and STOP WASTING MY GODDAMN MONEY, but they had to get her on a technicality. It got even more bogus when one of the jurors said the conviction should send a message to people who engage in illegal trades… When she wasn’t even charged with illegal trading… Hello idiot, why do I know that and the damn jurors don’t?

Reminds me of a thread started by a guy who was hounded and had the cops called on him for dragging his sled in a park… Apparently the moms thought he was “scaring their children.”

Same crap in this senior citizens complex my grandma lives in. They have all these little rules, that nobody should even think about, but are probably there in case there are major abuses. Like they have a pool and the written rule is that a resident can bring two guests to the pool at a time. So these bitter, bored, stupid old shits will actually report people who bring THREE grandkids to the pool… OMG! WTF harm does it do as long as they aren’t trashing the place or making noise or whatever. But the old farts just use the excuse to drag others down. And of course they are too chickenshit to face each other, they always go through management.

It would be nice if the average person kept track of how much time they spend worrying and complaining about others and trying to drag them down, and spent an equal amount of time on self-assessment and self-improvement. They might find it so rewarding they’d lose all interest in whatever stupid crap the people around them do.

Nick

True. You beat me to it. She does not fit the legal definition of an “insider” with respect to ImClone, so how they were even able to investigate her on insider trading is beyond me. The fact that it is now a federal offense to “lie to the government” is disturbing indeed, especially when not under oath! Of course, the government can lie all it wants to. God help this country. FREE MARTHA!

To compare Stewart to any of the popular corporate fraud cases (Enron etc.) that are making the rounds is ludicrous!

This is a typical case of an over zealous prosecuter trying to make his bones by tearing down someone rich and powerful. And might I add, it stinks!

If you are ever approached by a federal agent who simply wants to ask you questions, do not answer! Lying to a federal agent is a felony. What if you are trying to tell the truth but happen to be mistaken? Matters not! This is not democracy at it’s best my friends.

I am going to protest by making sure that we have Martha Stewart products in my home, and business. It may not amount to much, but if others feel as strongly as I do then maybe a signal can be sent to the people who perpetrated this crime on an innocent person!

BostonBarrister: We were discussing this at lunch today, and I agree with you wholeheartedly. Admittedly, Martha DID have the option of counsel, which she waived, but I still dislike the law. It’s fucked up when they can determine you were not guilty of the real offense, but make sure to nail you on some technicality so that they can get their conviction.

[quote]bandgeek wrote:

The fact that it is now a federal offense to “lie to the government” is disturbing indeed, especially when not under oath! Of course, the government can lie all it wants to.[/quote]

It is a trumped up charge. It just enables a more powerful and when it chooses abusive government.

Kind of like being charged of being a bougeriese in the old USSR. A cover all charge that can be implimented selectively.

The public face of this injustice is U.S. District Judge Miriam Goldman Cedarbaum. The backroom men?

BB

I am no legal expert but:

“Just last week, Cedarbaum again denied new trials for Stewart and Bacanovic, this time saying there was “overwhelming independent evidence” to support the guilty verdicts.”

A judge is there ONLY to direct and run proceedings. Not to decide on guilt or innocence. A jury and only a jury decides on guilt.

Stewart Sentenced to 5 Months in Prison

By ERIN McCLAM, Associated Press Writer

NEW YORK - Choking back tears and pleading for leniency, Martha Stewart (news - web sites) was sentenced to five months in prison Friday for lying about a stock sale. But the woman who saw her gracious homemaking empire crippled over a single transaction smiled boldly into the cameras outside to denounce her treatment, pitch her company and vow: “I’ll be back.”

Martha Stewart Sentenced to Prison and House Arrest

Stewart, who was also ordered to spend five months confined to her home and fined $30,000, was allowed to remain free pending appeal. The sentence was the minimum possible under federal guidelines.

Peter Bacanovic, the high-powered stockbroker who was convicted along with Stewart of lying about her stock sale in December 2001, received the same sentence of five months in prison and five months home confinement.

While she did not admit guilt in court ? a move that could have jeopardized her appeal ? Stewart took pains to tell U.S. District Judge Miriam Goldman Cedarbaum she was sorry that others had been hurt by the scandal.

“What was a small personal matter became over the last two and a half years an almost fatal circus event of unprecedented proportions spreading like oil over a vast landscape, even around the world,” Stewart said.

Cedarbaum accepted a defense request to recommend to federal prison officials that Stewart serve her time at a minimum-security facility in Danbury, Conn., close to her home in Westport.

“I believe that you have suffered, and will continue to suffer, enough,” the judge said.

But Cedarbaum, citing nationwide confusion over a recent Supreme Court ruling on sentencings, allowed Stewart to postpone the sentence while her lawyers appeal her conviction ? a process that could take months, and that legal experts have called an uphill battle.

Just before she was sentenced, Stewart ? who during her trial spoke only to declare her innocence ? rose from her seat and, her voice breaking almost to the point of sobs, told the judge she feared her life would be “completely destroyed.”

Then, in an extraordinary change of demeanor, Stewart walked down the courthouse steps, approached a microphone and denounced the scandal as full of “such venom and such gore ? I mean it’s just terrible.”

Smiling and showing her well-honed comfort with TV cameras, she even suggested fans could “continue to show your support” by subscribing to her magazines and buying her line of homemaking products.

And she vowed: “I’ll be back. I will be back. Whatever I have to do in the next few months, I hope the months go by quickly. I’m used to all kinds of hard work, as you know, and I’m not afraid.”

Investors sent the stock of Martha Stewart Living Omnimedia up 37 percent, or $3.17 to close at $11.81 on the New York Stock Exchange (news - web sites).

Stewart resigned as CEO of the company when she was indicted last year and gave up her seat on the board after she was convicted. She remains its leading creative force and holds the title of founding editorial director.

In a four-page letter to the judge on the eve of sentencing, Stewart touted her company’s success and said she was still “abysmally confused and ill prepared for what is described to me as the next step in this process.”

She pleaded for leniency: “My hopes that my life will not be completely destroyed lie entirely in your hands.” It was signed, “Most sincerely, Martha Stewart.”

Prosecutors also released the pre-sentencing letter they sent to the judge, a document that brushed aside defense claims Stewart and Bacanovic should get lighter sentences because of exemplary conduct in their lives.

“Most of the good works cited by both defendants ? showing kindness and compassion for friends, family, staff and colleagues going through difficult times, and acting as a role model for others in their professional lives ? are what one should expect of decent, hardworking people,” they wrote.

The prison sentence punctuated a chain of events that began on Dec. 27, 2001, when Stewart, in a brief phone call from a Texas tarmac on her way to a Mexican vacation, sold 3,928 shares of ImClone Systems Inc., a biotechnology company run by her longtime friend Sam Waksal.

Prosecutors alleged that Bacanovic, now 42, ordered his assistant to tip Stewart that Waksal was trying to sell his shares. ImClone announced negative news the next day that sent the stock plunging. Stewart saved $51,000.

Stewart and Bacanovic always maintained she sold because of a preset plan to unload the stock when it fell to $60.

At his own sentencing, Bacanovic told Cedarbaum he deeply regretted “the pain and the sorrow” the case had caused his family, friends, colleagues and clients.

The star witness against the pair was Douglas Faneuil, a young former brokerage assistant who vividly described Bacanovic’s order when he learned Waksal was trying to sell: “Oh my God. Get Martha on the phone.”

But the verdict on March 5 ? guilty on four counts apiece for Stewart and Bacanovic ? set off a string of events nearly as dramatic as the trial itself.

In April, lawyers for both defendants accused one juror of lying about an arrest record in order to get on the trial. Cedarbaum denied a request for a new trial, saying there was no proof the juror lied or was biased.

And in May, federal prosecutors accused Larry F. Stewart, a Secret Service ink expert, of lying repeatedly in his testimony at the trial ? mostly about the role he played in ink-analysis testing of a stock worksheet.

Just last week, Cedarbaum again denied new trials for Stewart and Bacanovic, this time saying there was “overwhelming independent evidence” to support the guilty verdicts.

The juror issue and the perjury charges against Larry Stewart, no relation to Martha Stewart, are expected to form the basis of Martha Stewart’s appeal to the 2nd U.S. Circuit Court of Appeals (news - web sites).

Additionally, lawyers said Friday they will argue that prosecutors inappropriately suggested at trial that Stewart was charged with insider trading ? a count never included in the indictment against her.

“The whole atmosphere of the trial was one about a crime that was never charged and never happened,” said Walter Dellinger, a lawyer hired specifically to handle the appeal.

Defense lawyer Robert Morvillo had asked the judge for a sentence of merely probation and community service working with poor women. He said Stewart “knows she’s not perfect” and deserved mercy.

“She has brought a measure of beauty to our everyday world with refined color schemes, floral arrangements, and culinary delights,” he said. “She has stood for the values of quality and making products as perfect as possible.”

Prosecutors, as they did when Stewart was indicted and throughout the trial, portrayed the case as a matter of preserving the integrity of government investigations.

“Citizens like Ms. Stewart who willingly take the steps to lie to officials when they are under investigation about their own conduct, those citizens should not expect the leniency that Ms. Stewart seeks,” prosecutor Karen Patton Seymour told the judge.

The judge noted she had received more than 1,500 letters from Stewart supporters across the country pleading for leniency.

But she said a prison term was appropriate because “lying to government agencies during the course of an investigation is a very serious matter, regardless of the outcome of the investigation.”

“I have not lost sight of the seriousness of the offense of which you have been convicted,” the judge said. “Lying to government agencies during the course of an investigation is a very serious matter.”

from:

U.S. District Judge MIRIAM GOLDMAN CEDARBAUM motivation is clear. It has nothing to do with securities fraud, nothing to do with investor protection but everything to do with enforcing and expanding the reach and force of the government and its agents.

I can’t believe I am going to say this…

I agree with Boston 1000%.

I actually made the comment tonight while watching the interview with that twat Barb walters…america loves to see an underdog rise to the top, only to REALLY LOVE seeing him fall.

I agree w/ BB to a certin extent. I also hope that her scumbag broker gets the full maximum sentence.

Here’s the thing people try to cheat the system and they get caught. If Martha hadn’t lied to the federal agent. This probably wouldn’t even have never gone to trail. But, that was her mastike. She did lied. And they went after her. And got her.

Eventhough, I work in the Corporate fitness center. I am hush hush what I over hear. I known a lot of employee’s that got fired or caught just by over hearing what one person said about one stock and then bulrting it out there freinds and famliys.

So, in ways I think Martha did get what she deserved. Although, I don;t think she deserve jail time though.

But, she did not tank a companies fund like ENRON or TYCO, They are the ones that destoryed hundreds of families lives.

Mathra just cheated w/ 40,000 of her own money.

Now here is some price action that should be investigated for insider trading. Shares of Martha Stewart Living the day BEFORE Martha was sentenced.

"[Twelve million shares traded, more than 40 times its usual daily volume and the second-heaviest day in the stock since it went public. (The first was March 5, the day of the verdict.) The shares are up about 16% from when Stewart was convicted.

“It’s really a rally that started yesterday,” said Richard Hastings, retail analyst at Bernard Sands. “The speculation was building up that if her sentencing was light, that would help the perception of the company and hopefully improve Ms. Stewart’s ability to participate as the creative director after her sentencing is finished.”]"

Basically the market saw a relatively light sentence (i.e. less than 1 year) as bullish for shares of Martha Stewart Living and a relatively heavy sentence (i.e. 15 years plus) as bearish for shares of Martha Stewart Living.

When a relatively light sentence (not so light if you are the one doing time!) was announced it was bullish for shares of Martha Stewart Living.

But here is the kicker.

Now the day BEFORE Martha’s sentence is announced shares of Martha Stewart Living start to rise and the volume of shares traded explodes.

At the very least it would raise the question whether the sentence was leaked.

The market is just not smart enough to regularlly be correct about news, data releases and announcements.

Now I am not saying that there was any insider trading just that the price action the day BEFORE the sentence was interesting. Maybe the market justed guessed right for once.

marketfeatures/10171803.html

For Stewart’s Stock, This Sentence Is a Reprieve
By Meredith Derby and Eric Gillin
Staff Reporters

7/16/2004 1:33 PM EDT
URL: Stock Market Breaking News by Wall Street Experts - TheStreet

marketfeatures/10171803.html

Martha Stewart may be “very sorry,” but for short-sellers betting against her stock, Friday’s relatively light sentence is proving to be the source of a different kind of regret.

Shares of Martha Stewart Living (MSO:NYSE) were recently up $2.52, or 29%, to $11.16, boosted by perceptions that Stewart’s ability to promote the company won’t be destroyed by her prison term. Traders were also conscious of another possibility: Given Stewart’s still-huge position in the stock, she might be inclined to take the company private after she gets out.

Under the sentence, Stewart will serve five months in prison, five months in home confinement and will pay a $30,000 fine – a far cry from the maximum 16-month sentence the court could have imposed. In the meantime, Stewart remains free and won’t have to serve time until her appeal receives a ruling.

Twelve million shares traded, more than 40 times its usual daily volume and the second-heaviest day in the stock since it went public. (The first was March 5, the day of the verdict.) The shares are up about 16% from when Stewart was convicted.

“It’s really a rally that started yesterday,” said Richard Hastings, retail analyst at Bernard Sands. “The speculation was building up that if her sentencing was light, that would help the perception of the company and hopefully improve Ms. Stewart’s ability to participate as the creative director after her sentencing is finished.”

Hastings also pointed to the enormous level of short interest in the company’s shares, which have been high throughout the scandal, as investors bet the stock will continue to suffer. Indeed, at the end of June, investors had shorted more than 5.9 million of the company’s shares – more than the company’s entire float. (Shares can be borrowed and sold short more than once.)

Martha Stewart Living’s short interest ratio, the short interest divided by average volume, is 13.7%, and the company’s stock was ripe for a squeeze. As a stock rises, shorts exaggerate moves in stocks as they are forced to cover bets with shares that are going up.

The sentence has been good for the shares and it could help boost business, too. Because of the lighter sentence, Martha Stewart Living Omnimedia may have Martha Stewart back promoting her brand well ahead of schedule. Going forward, Hastings said it’s critical that the company start doing new things – and perhaps the sentencing will be a catalyst to do it.

“I would stress that regardless of what happens, Martha Stewart Living has to get busy with new products, new services, new designs,” Hastings said. “They can’t sit still. If they’re going to wait for her house arrest to be over, then my outlook for Martha Stewart Living is not positive.”

Indeed, the company’s track record without Martha has not been stellar. In the first quarter, the company announced a loss that was double what Wall Street expected and said second-quarter losses would be deep as well. Even more telling, revenue slumped 30% to $23.9 million as advertisers began disassociating with the company, which has been disassociating itself with Stewart, rolling out the Martha-free Everyday Food.

Even analysts that dislike the company have said that once the sentencing passes, the worst could be behind Martha Stewart Living. In a research note from May, Morgan Stanley analyst Douglas Arthur, who rates the company at underperform, said that advertisers would likely come back once the sentence was handed down and noted “customer loyalty remains firm, setting the stage for recovery in 2005-2006.”

With so many pretenders to Martha’s throne emerging with their own magazines, TV shows and home products, customer loyalty is a crucial component of the company’s business. And because Martha got a five-month term instead of the maximum 16 months, it will be easier for the cult of Martha to continue shrugging off the verdict and look for more of the company’s products on newsstands and store shelves – a trend the company has already noted.

“Our research shows that magazine subscribers, in particular, were unfazed by the verdict immediately afterward and remain so roughly six weeks later,” the company said two months ago, in a conference call discussing first-quarter results.

Ultimately, Stewart’s ability to ride out the scandal could result in a new public persona as a survivor that could further endear her to fans.

“Nothing fundamentally changes for the company or for Martha – their founder has a felony conviction,” said Barry Ritholtz, chief market strategist at Maxim Group and a contributor to TheStreet.com’s sister site, RealMoney.com. “But maybe this makes her more human and fallible. And she can come back as a felon. She owns 70% of the company.”

She may be the company’s largest shareholder, but at the moment, Stewart holds the title of founding editorial director and is little more than a former employee, albeit one whose name, face and persona are inextricably linked to the company’s business. In mid-March, Stewart relinquished her spot on the company’s board and role as creative director, and last year resigned as chairman and CEO of the company.

Martha Stewart Living said in a statement Friday afternoon that it is “saddened” for Stewart but “heartened that Judge Cedarbaum recognized Martha’s strong public support and her lifetime of contributions to others.”

“After 26 months of uncertainty, we see this as an important step toward closure for Martha Stewart Living,” the statement continued. “In the face of difficult events, our talented employees continue to develop inspired and original ‘how-to’ information and products for the home. We thank them, our loyal customers and advertisers and our stalwart distribution and manufacturing partners for sticking with us through these challenging times.”

With so much invested in the company, Ritholtz thinks Stewart will eventually take the company private, at least once her jail time and house arrest have wilted from the public’s memory. In the interim, Stewart will likely remain involved in the company’s present business in some capacity, even though it is technically prohibited by law. Ritholtz said it would be foolish to think she is not involved, seeing as she built the company from the ground up.

“To say she can’t cook, can’t design” is ridiculous, said Ritholtz, whose company does not own shares of Martha Stewart Living.

“She strikes me as someone who’s a fighter, who’s not going to roll over and die,” said Ritholtz, who is also an attorney. “She will take this challenge and come clawing back. I will be very surprised to not see her after a period of self-realization and self-reflection.”

Since Stewart owns more than half of the company’s shares, taking it private would not be very difficult, he said. Doing so “pulls her out from under the NYSE regulation. At that point, it becomes a private thing.”

After two years of grilling in the public spotlight, that’s something Stewart might savor.

if Martha has kitchen duty while she’s in the big house, there’s gonna be a lot of slimy people saying “oh yeah, and Martha Stewart was not only my chef for a few months, but our interior decorator as well”