Skip to comments.Martha Stewart Ordered to West Virginia Prison
Posted on 09/29/2004 7:48:42 AM PDT by Dog Gone
Westport's Martha Stewart has been ordered to report to a prison in West Virginia to serve her five-month term, a source close to Stewart said today.
Stewart had hoped to serve her time in Danbury so she could be close to her 90-year-old mother, or in a prison facility in Florida where there are good transporation links.
The U.S. Bureau of Prisons told Stewart last week to report to jail by Oct. 8. The source said Stewart had been told to report to the federal prison camp for women in Alderson, W. Va.
Stewart's lawyer, in a Sept. 15 letter to a federal judge requesting she be allowing to serve her sentence for obstruction of justice as soon as possible, specifically asked that she not been assigned to Alderson because it is not readily accessible by air or rail.
Note to self: Send handful of posies and tastefully-decorated cake (with rat-tail file) to Martha ...
Cool. She can whittle sets of buck teeth!
I believe that it was Alderson where Tokyo Rose was held.
West-by-God-Virginie? How gauche!
I think it sends a strong message that prisoners don't get to select their prisons, not even celebrity prisoners.
Not going to Florida? So much for pastels... and no suntan either. Drat.
The fact that "she tried" is further indication of her noticeable arrogance.
Lynette "Squeaky" Fromme, too.
Martha's Spring Book will be: Shades of Gray and White
Drop by & say howdy to the new neighbor.
I thought she was convicted of interfering with an FBI investigation, not obstrucion?
That's awesome. Some of the ladies in WV will undoubtedly teach her something. I wonder why she is going to WV-- maybe because its virtually all white???
Oh she is going to have a grand time being told when to eat, when to sleep and when to shower.
I think she wanted that executive prison on or next to Eglin AFB where the inmates work(play) on a golf course.
Wow. Her request for Danbury, as a short-term, first-time, non-violent offender was not unreasonable. And her request to get things started, to end the delay (Oct 8!), after a couple months of requests to get to her punishment, is not unreasonable. Due process, after all, dictates timeliness. They are really jerking her around, making an example of her. (Yes, I understand her crime and her guilt and part in it.)
West Virginia ... Martha will gain a whole new appreciation for quilted blankets.
|Stewart convicted on all charges
|Jury finds style maven, ex-broker guilty of obstructing justice and lying to investigators.
NEW YORK (CNN/Money) - A jury found Martha Stewart guilty Friday on all four counts of obstructing justice and lying to investigators about a well-timed stock sale, and the former stockbroker turned style-setter could face years in jail.
Her ex-broker, Peter Bacanovic, was found guilty on four of the five charges against him. Each of them faces up to five years in prison and $250,000 in fines for each count. Sentencing is set for June 17.
Neither defendant appeared to show any emotion as the verdict was read, while the lead prosecutor seemed to be holding back tears of joy.
"The word is -- beware -- and don't engage in this type of conduct because it will not be tolerated," David Kelley, U.S. attorney for the Southern District of New York, said outside the courthouse.
One of the jurors said, "This is a victory for the little guys. No one is above the law."
About an hour after the verdict was read, Stewart -- wearing a fur around her neck and a black overcoat and carrying a brown leather bag -- strode poker-faced down the stairs of the courthouse, accompanied by her lawyers, and left. She did not respond to questions shouted at her by reporters.
As she came within sight of a crowd in the street, some people began chanting, "We want Martha!"
Eyewitnesses said Stewart's daughter Alexis was crying.
In a statement posted on her Web site, Stewart said, "Dear Friends: I am obviously distressed by the jury's verdict but I take comfort in knowing that I have done nothing wrong and that I have the enduring support of my family and friends.
"I believe in the fairness of the judicial system and remain confident that I will ultimately prevail." (For more on Stewart's statement, click here).
Stewart's lead attorney said his client would appeal.
"It was a difficult process for all of us," Robert Morvillo said outside the courthouse, adding that he was disappointed in the verdict but confident about an appeal.
A lawyer for Bacanovic said he also will appeal. The ex-Merrill Lynch broker made no comment as he left the courthouse not long after Stewart.
Neither Stewart, 62, nor Bacanovic testified at the trial, which began Jan. 27 and ran for five weeks. Attorneys for Bacanovic called just a handful of witnesses while Morvillo called only one witness.
"Unless this is somehow undone on appeal, she's a felon and she's going to prison," legal analyst Kendall Coffey said.
"This was a total rout," said CNN legal analyst Jeffrey Toobin, who sat through the trial. "The story she told investigators after she made the stock trade simply didn't add up."
The panel of eight women and four men began deliberating Wednesday on whether Stewart and Bacanovic, 41, obstructed justice and lied to the government about her sale of ImClone Systems Inc. stock in December 2001.
The conviction came exactly a week after U.S. District Judge Miriam Goldman Cedarbaum threw out the most serious charge against Stewart -- securities fraud -- which carried a maximum penalty of 10 years in prison and a $1 million fine.
The charge -- which the judge had called "novel" during the trial -- accused Stewart of using her own statements that she was innocent as a ploy to mislead investors in her company, Martha Stewart Living Omnimedia.
Martha Stewart Living (MSO: Research, Estimates) stock rallied early Friday on hopes for a favorable verdict but then plunged 22.6 percent afterward on the New York Stock Exchange, where Stewart once served as a director.
The company said it would survive but analysts said the verdict was a serious threat. Stewart quit as chairman and CEO of Martha Stewart Living after she was indicted last summer but stayed on as chief creative officer. (For more on the company's outlook, click here).
Despite the intense publicity surrounding the trial -- the most closely watched of the recent corporate fraud cases -- the stock trade at its center involved a relatively small amount of money.
Stewart avoided a loss of about $51,000 by selling nearly 4,000 shares of ImClone 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.
By contrast, Dennis Kozlowski and Mark Swartz are charged with looting Tyco of $600 million, John Rigas and his sons are charged with stealing millions from Adelphia, the cable company Rigas founded, and the collapse of Enron and WorldCom led to billions of dollars in losses for investors and costs thousands their jobs.
Ironically, Erbitux, the ImClone drug at the heart of the scandal, was approved by regulators last month to treat certain forms of cancer.
Prosecutors argued that Stewart sold her ImClone stock only after Bacanovic told his assistant 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.
The government's star witness in the case, Douglas Faneuil, Bacanovic's former assistant, testified that his boss ordered him to pass the inside tip about ImClone to Stewart.
Mark Powers, Faneuil's attorney, said his client "came forward because his conscience told him it was the right thing to do. He was solely a witness telling the truth."
Stewart told CNN's Larry King Live last December that she was not prepared for the trial.