“ Guess Martha knew someone.”
Martha did little wrong as I understand the situation .
She heard news about a company and bought stock in it.
“She heard news about a company and bought stock in it.”
A U.S. Securities and Exchange Commission and U.S. Attorney probe of trading in the shares of ImClone Systems resulted in a widely publicized criminal case, which resulted in prison terms for businesswoman and television personality Martha Stewart, ImClone CEO Samuel D. Waksal and Stewart’s broker at Merrill Lynch, Peter Bacanovic.
Martha Stewart, the founder of Martha Stewart Living Omnimedia, became embroiled in the scandal after it emerged that her broker, Peter Bacanovic, tipped her off that ImClone was about to dump due to the FDA’s not sanctioning the drug Erbitux. In September 2001 Bristol-Myers Squibb Co signed a $2 billion deal for the marketing rights to the drug once it received FDA approval.
In response to hearing about the drug not being sanctioned, Stewart sold about $230,000 in ImClone shares on December 27, 2001, a day before the announcement of the FDA decision to not sanction the drug. This is called short selling. Stewart’s involvement would have never come to light had Doug Faneuil, Bacanovic’s assistant, not disclosed it to investigators. Although Stewart maintained her innocence, she was found guilty and sentenced on July 16, 2004, to five months in prison, five months of home confinement, and two years’ probation for lying about a stock sale, conspiracy, and obstruction of justice.
Wy69