Heather Troain
ACC960
The Martha Stewart Scandal
History
Martha Stewart is a household name. The famous homemaker is known for many things including her cooking shows to magazines to her line house wares, we all know who she is. She founded Martha Stewart Living Omnimedia Inc., a company involved in publishing, merchandising, and television. At an early age, Martha learned the basics of cooking, baking, and sewing from her mother and her father taught her gardening. After college, she married a man named Andrew Stewart and became a successful stockbroker working on Wall Street. She left Wall Street to pursue her childhood dreams and opened up a gourmet food shop and catering business in Westport, Connecticut. She published her first book …show more content…
She stated she had issued a "stop-loss" order. This meant that if stock prices dropped below $60 a share she would sell. She ordered Bacanovic to sell 3,928 shares. Shortly after she that she made a phone call to Sam Waksal but he could not be reached. Her assistant left a message for him stating that something was going wrong with ImClone stock. No return phone call was made by either parties. Martha Stewart denied that she was doing any improper trading of stock when she sold her shares. It would come to light that Martha had lied. Douglas Faneuil, broker's assistant handling sales of the stock for Martha, told lawyers that Peter Bacanovic made him lie about that stop-loss order. He told prosecutors that he was told by Bacanovic to inform Stewart that Sam Waksal and his daughter were selling their stock and she might want to consider doing the same. Faneuil received no jail time but was fined $2,000. Him and Bacanovic were fired by Merrill Lynch. Faneuil after pleading guilty and Bacanovic for not cooperating with investigators. Douglas also reported that he received money and other valuables for keeping quiet about what was going
ACC960
The Martha Stewart Scandal
History
Martha Stewart is a household name. The famous homemaker is known for many things including her cooking shows to magazines to her line house wares, we all know who she is. She founded Martha Stewart Living Omnimedia Inc., a company involved in publishing, merchandising, and television. At an early age, Martha learned the basics of cooking, baking, and sewing from her mother and her father taught her gardening. After college, she married a man named Andrew Stewart and became a successful stockbroker working on Wall Street. She left Wall Street to pursue her childhood dreams and opened up a gourmet food shop and catering business in Westport, Connecticut. She published her first book …show more content…
She stated she had issued a "stop-loss" order. This meant that if stock prices dropped below $60 a share she would sell. She ordered Bacanovic to sell 3,928 shares. Shortly after she that she made a phone call to Sam Waksal but he could not be reached. Her assistant left a message for him stating that something was going wrong with ImClone stock. No return phone call was made by either parties. Martha Stewart denied that she was doing any improper trading of stock when she sold her shares. It would come to light that Martha had lied. Douglas Faneuil, broker's assistant handling sales of the stock for Martha, told lawyers that Peter Bacanovic made him lie about that stop-loss order. He told prosecutors that he was told by Bacanovic to inform Stewart that Sam Waksal and his daughter were selling their stock and she might want to consider doing the same. Faneuil received no jail time but was fined $2,000. Him and Bacanovic were fired by Merrill Lynch. Faneuil after pleading guilty and Bacanovic for not cooperating with investigators. Douglas also reported that he received money and other valuables for keeping quiet about what was going