In 2002, Martha Stewart made stunning headlines when it was reported that she was underneath investigation for securities fraud. On December 27, 2001, Stewart bought all of her shares of ImClone inventory the day earlier than the corporate’s most cancers drug was declined by the Meals and Drug Administration. Stewart allegedly received a tip-off from her dealer, Peter Bacanovic, who was given the information by ImClone founder Samuel D. Waksal.
In the course of the investigation, Stewart and Bacanovic informed the SEC that they’d agreed upon a plan to promote the inventory if it fell underneath $60. Nonetheless, there was no report of their dialog however Stewart maintained her innocence. Issues got here to a head when Bacanovic’s assistant, Doug Faneuil, admitted that he had been ordered to repeat Stewart and Bacanovic’s claims. The case went to trial and on March 5, 2004, Stewart was discovered responsible of conspiracy, obstruction, and mendacity to federal investigators. The home mogul was sentenced to 5 months in jail and 5 months of home arrest, with two years of probation.
Stewart known as her sentencing “shameful” and “an nearly deadly circus occasion of unprecedented proportions,” based on Inside Version. She thanked all of the followers that stood by her and adamantly acknowledged, “I am not afraid. I am not afraid, in any way.” True to her phrase, Stewart did not let her jail stint deter her and went on to make one of many greatest comebacks in historical past.