The Trial of Martha Stewart

Paper Summary:

This paper discusses the trial and charges against Martha Stewart. It further looks at the charge of insider trading and whether or not Stewart was guilty of the crime. Additionally, the paper discusses whether or not the prosecutors had motivations outside of the legal realm to prosecute Stewart, and whether or not they used good judgment in their decisions.

From the Paper:

"The case surrounding Martha Stewart began with her sale of ImClone Stock in the amount of $228,000 on December 27, 2001. The sale of the stock itself was not the issue, however, it was the fact that this sale took place only one day prior to the stock taking a drastic plunge in the market after the company announced that the Food and Drug Administration, (FDA) had no intention of approving their drug for cancer treatments (Hill C10). Sam Waksal, a personal friend of Stewarts, (and ImClone founder) had already pleaded guilty to insider trading charges in 2000 for having urged his family to sell $10 million worth of ImClone stock because of his knowledge of the announcement."

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