no. 1-0083 Martha Stewart and the ImClone Scandal On January 20‚ 2004‚ jury selection launched the trial of Martha Stewart‚ Chief Creative Officer and former Chief Executive Officer and Chairman of the Board of Martha Stewart Living Omnimedia (MSO). Nine charges filed by the Federal Grand Jury in New York and the SEC relate to Stewart’s personal sale of $228‚000 in ImClone Systems‚ Inc. stock on December 27‚ 2001‚ one day before regulators rejected the biotech company’s cancer drug (Erbitux)
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Martha Stewart: Lemons into Lemonade Before one can make an informed decision as to whether Martha Stewart’s handled the incident responsibly or whether or not her actions were moral or immoral‚ one must first understand the basics of ethics and understand whose rights are involved and how they were affected. Then one must also examine who will be helped and who will be hurt by her actions and then make a decision based on the information and personal values as they relate to the issue. Martha
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THE TALE OF TWO MARTHAS "I ’ll be back .I ’m not afraid. Not afraid whatsoever. I ’m very sorry it had to come to this." (Gasparino‚ 22). Those were the words that Martha Stewart said on the courthouse steps on July 16‚ 2004‚ as she had just been sentenced to five months in prison. A defiant Martha Stewart was trying to instill confidence in her stock holders and save a sinking ship‚ her company‚ Martha Stewart Living Omnimedia Incorporated (MSO). That day her companies stock closed at $
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On August 3rd‚ 1941‚ Martha and Edward Kostyra gave birth to Martha Stewart. Martha was the second born out of six kids and was born in Jersey City‚ New Jersey. Here is her story of how she became one of the great business leaders. Growing up‚ Stuart’s father had made sure that from a young age the children would be taught the value of self-sufficiency. With this‚ the Kostyra children had to do various household chores. From this‚ Stewart learned how to cook‚ sew‚ and garden. From the
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Case 6.10 – Martha Stewart: Not Such a Good Thing 1. What issues did Martha Stewart‚ Bacanovic‚ and Faneuil miss in making their decisions about selling the ImClone stock in their conduct following the sales? Apply the models and make a list of suggested questions they could have asked that might have affected their decisions. I do not feel any of them were thinking about any consequences! Why was this small amount of money so important to them‚ especially Ms. Stewart‚ who was a multi-
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Introduction Martha Stewart is an American Home decorator Icon surrounded by accusations of Inside trading‚ Obstruction of justice‚ False statements and Conspiracy. Her trial and investigation lasted for two years ending with her being found guilty of charges and convicted to spend time in jail‚ home arrest and probation. In this work I will expose Martha Stewart’s behavior and why her actions were considered outlaw‚ unethical and unprofessional. I will also explain which ethical behavior she used
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In 2003‚ Martha Stewart was facing prison time and her empire in domestic art was at risk because of “nine-count federal indictment” which she was charge will “perjury and conspiracy” because of a “high profile stock trading scandal” (Hurtado‚ N. P. (n.d.). James Comey‚ a U.S. Attorney‚ said that “she brought trouble on herself and her company by lying to her shareholders and investors in an attempt to cover her tracks and keep her stock from plummeting” (Hurtado‚ N. P. (n.d.). Comey believe that
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INTRODUCTION Martha Stewart a known celebrity and founder of Martha Stewart Living Omnimedia (a business which is built on showing others how to cost effectively manage and decorate the home)‚ who was given a tip by Douglas Fanueil and Mr. Bacanovic‚ employees of the Merrill Lynch brokerage company. This tip which broke the confidentiality policy of the brokerage company led to the subsequent sale of Martha’s shares in the ImClone company during the latter company’s blackout period with the effects
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On December 27 ‚ 2001 Martha Stewart‚ America’s beloved housewife‚ sold her shares of ImClone after she received specific inside information regarding the status of the companies business. A series of events led to an investigation‚ interviews‚ indictments‚ a trial & sentencing of Martha Stewart to 5 months in a minimum security prison camp and then 5 months of home confinement. Merril Lynch tipped off the Securities & Exchange commission to report the possibility of insider trading on
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was‚ Martha Stewart being arrested for lying about a stock sale. “Stewart‚ 63‚ was convicted in March of lying to investigators about why she sold ImClone stock in December 2001‚ just before the stock price plunged” (NBC News‚ 2004). Martha is a very intelligent‚ business woman‚ but she made a bad decision. 2. Emotional perception and expression- Martha Stewart did not express much upset when it came to her being sentenced with jail time. Emotional facilitation of thought- when Martha Stewart
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