According to the U.S. Securities and Exchange Commission (SEC), Stewart avoided a loss of $45,673 by selling all 3,928 shares of her ImClone Systems stock on December 27, 2001, after receiving material, nonpublic information from Peter Bacanovic, her broker at Merrill Lynch. The day following her sale, the stock value fell 16%.
It’s complicated, as expected…
On June 4, 2003, Stewart was indicted by a grand jury on nine counts, including charges of obstruction of justice.
Only four counts of obstructing justice and lying to investigators were prosecuted by the time it got to court.
After a highly publicized six-week jury trial, Stewart was found guilty in March 2004 of felony charges of conspiracy to obstruct, of obstruction of an agency proceeding, and of making false statements to federal investigators and was sentenced in July 2004 to serve a five-month term in a federal correctional facility and a two-year period of supervised release (including five months of electronic monitoring).
But insider trading is a civil charge not a criminal charge… Apparently.
On the day she was indicted, the U.S. Securities and Exchange Commission filed a civil complaint against Stewart with charges of insider trading (for violating §17(a) of the Securities Act of 1933, §10(b) of the Securities Exchange Act of 1934, and SEC Rule 10b-5). The civil charges were stayed pending the criminal proceeding.
In August 2006, the Securities and Exchange Commission announced that it had agreed to settle the related civil case against Stewart. Under the settlement, Stewart agreed to a five-year bar from serving as a director, or as the CEO, CFO (or other officer roles in which she would be responsible for preparing, auditing, or disclosing financial results), of any public company. She also agreed to pay the maximum penalty of three times the losses she avoided, or $195,000.
She was already a billionaire at the time. 45k seems small potatoes at that point.
Also, the whole debacle was because She RECEIVED a call from her broker. Like the guy that gets paid to handle her money talked to her about her money…is somehow insider trading
Technically it was but right now it’s looking like it did when we made Jimmy sell the peanut farm. Trump has grifted billions with market manipulation, insider trading, lots of obstruction with the documents, just piles of crimes every day. The rest of his family is no different. It feels a little silly that we put Martha in jail in the face of all that. She wasn’t even a public servant.
i mean it can be. if the broker (who should know acting on the information would be insider trading) is trying to get clients to then act on it, the broker is suborning criminal activity. she really needed a new broker. my supposition is that the prosecutor was brand fucking new, saw a big name and thought “oh gee i bet they would make a good example and get my name in the news”, thought “oh gee i bet they can’t afford a defense attorney” and they were a fresh hire from some shitty civil firm and went after the most money.
Guess who her prosecutor was. Comey. He has a thing about screwing over women, apparently.
Also she was never found guilty of insider trading. It was some bullshit charge to save face from the idiotic prosecution.
It’s complicated, as expected…
Only four counts of obstructing justice and lying to investigators were prosecuted by the time it got to court.
But insider trading is a civil charge not a criminal charge… Apparently.
She was already a billionaire at the time. 45k seems small potatoes at that point.
Also, the whole debacle was because She RECEIVED a call from her broker. Like the guy that gets paid to handle her money talked to her about her money…is somehow insider trading
Technically it was but right now it’s looking like it did when we made Jimmy sell the peanut farm. Trump has grifted billions with market manipulation, insider trading, lots of obstruction with the documents, just piles of crimes every day. The rest of his family is no different. It feels a little silly that we put Martha in jail in the face of all that. She wasn’t even a public servant.
i mean it can be. if the broker (who should know acting on the information would be insider trading) is trying to get clients to then act on it, the broker is suborning criminal activity. she really needed a new broker. my supposition is that the prosecutor was brand fucking new, saw a big name and thought “oh gee i bet they would make a good example and get my name in the news”, thought “oh gee i bet they can’t afford a defense attorney” and they were a fresh hire from some shitty civil firm and went after the most money.