Martha Stewart Criminal Traits
MARTHA STEWART – CRIMINAL LIABILITY
Martha Stewart – Criminal Liability
Carnell C. Holmes
Austin Peay State University
Business Law
Professor Elizabeth Rankin
December 7, 2012
1
MARTHA STEWART – CRIMINAL LIABILITY
2
Abstract
Most people that are in high profile positions would rather receive positive accolades for their great accomplishments. Committing fraudulent acts or being unethical is not what a person with a thriving business would want to connected with. A name that most households have grown familiar with was, Martha Stewart. Martha Stewart was associated with an array of cookbooks, and she was also able to influence her designing style throughout many homes. Aside from being a phenomenal trendsetter, Martha …show more content…
Jennings (2009) found the following:
After the 1929 stock market crash, Congress perceived problems with the way securities were being sold and traded in the national exchanges. To correct some of the problems and abuses in the trading of securities, Congress passed the 1933 and 1934 Securities Act, the first of which created the SEC as the administrative agency responsible for the enforcement of the two acts. (p. 188)
Martha Stewart being a prestigious, successful woman was able to hire the best attorneys that money could purchase. Stewart`s attorney`s argument was "Why would Stewart, herself a former stockbroker, deliberately break the law and risk a fortune to save what was a small amount of money" (Newsmax.com, 2004)?
According to the U.S Department of Justice, Federal Bureau of Investigations:
White-collar crime would be considered non-violent crimes that are mainly committed by individuals that have high profile statuses or an occupation of trust.
Most of the crimes are economic crimes, corporate crimes that include environmental law violations and health and safety law violations. Martha
MARTHA STEWART – CRIMINAL …show more content…
Impact of the Crime
Once Martha was charged with the insider trading and obstruction of justice, she was forced to step down as the CEO of her company. She was ridiculed and shamed because of her unethical behavior. The media was able to portray her in an entirely different matter and it was nothing glamorous about that. The exposure caused more people to want to get to know who she was and she became even more popular because of the case and charges she was faced with.
Martha Stewart lost the support and trust of her stakeholders; it was obvious that she was not concerned about their interest in her company. The stock of Martha Stewart Living Omnimedia
Inc, plummeted by 60% causing her to lose over $300 million.
Punishment
In 2004, Stewart was found guilty of conspiracy and obstruction of justice for a case of insider stock trading. Martha Stewart was sentenced to five months in a minimum federal woman’s prison in West Virginia. Also, she was on house arrest for five months and received two years probation and a fine of $30,000.
MARTHA STEWART – CRIMINAL LIABILITY
6
Jennings (2009) found the
Martha Stewart – Criminal Liability
Carnell C. Holmes
Austin Peay State University
Business Law
Professor Elizabeth Rankin
December 7, 2012
1
MARTHA STEWART – CRIMINAL LIABILITY
2
Abstract
Most people that are in high profile positions would rather receive positive accolades for their great accomplishments. Committing fraudulent acts or being unethical is not what a person with a thriving business would want to connected with. A name that most households have grown familiar with was, Martha Stewart. Martha Stewart was associated with an array of cookbooks, and she was also able to influence her designing style throughout many homes. Aside from being a phenomenal trendsetter, Martha …show more content…
Jennings (2009) found the following:
After the 1929 stock market crash, Congress perceived problems with the way securities were being sold and traded in the national exchanges. To correct some of the problems and abuses in the trading of securities, Congress passed the 1933 and 1934 Securities Act, the first of which created the SEC as the administrative agency responsible for the enforcement of the two acts. (p. 188)
Martha Stewart being a prestigious, successful woman was able to hire the best attorneys that money could purchase. Stewart`s attorney`s argument was "Why would Stewart, herself a former stockbroker, deliberately break the law and risk a fortune to save what was a small amount of money" (Newsmax.com, 2004)?
According to the U.S Department of Justice, Federal Bureau of Investigations:
White-collar crime would be considered non-violent crimes that are mainly committed by individuals that have high profile statuses or an occupation of trust.
Most of the crimes are economic crimes, corporate crimes that include environmental law violations and health and safety law violations. Martha
MARTHA STEWART – CRIMINAL …show more content…
Impact of the Crime
Once Martha was charged with the insider trading and obstruction of justice, she was forced to step down as the CEO of her company. She was ridiculed and shamed because of her unethical behavior. The media was able to portray her in an entirely different matter and it was nothing glamorous about that. The exposure caused more people to want to get to know who she was and she became even more popular because of the case and charges she was faced with.
Martha Stewart lost the support and trust of her stakeholders; it was obvious that she was not concerned about their interest in her company. The stock of Martha Stewart Living Omnimedia
Inc, plummeted by 60% causing her to lose over $300 million.
Punishment
In 2004, Stewart was found guilty of conspiracy and obstruction of justice for a case of insider stock trading. Martha Stewart was sentenced to five months in a minimum federal woman’s prison in West Virginia. Also, she was on house arrest for five months and received two years probation and a fine of $30,000.
MARTHA STEWART – CRIMINAL LIABILITY
6
Jennings (2009) found the