Martha Stewart an American businesswoman, writer, former fashion model, and television personality star; in the early 2000’s Martha Stewart was convicted of charges related to the ImClone insider trading affair and was sentenced to prison. Even though Martha Stewart was not a member of the biotech company ImClone, I believe the charges that were proposed and set in the case are fair and justified, because Martha acted upon a tip from her broker, and then after she lied to investigators about why she sold her share of ImClone stock right before the stock price plunged.
First we have to know what exactly is insider trading. Insider trading refers to “the illegal practice of a shareholder in a public company who buys and or sells stocks in that …show more content…
Prosecutors claim that Stewart sold her shares after her broker informed her that ImClone’s founder were attempting to dispose of their stock. The court found Martha Stewart “guilty of conspiracy, four counts of obstruction of justice, and two counts of giving false information to federal authorities” (n.d.). Martha Stewart was sentenced to “five months in prison and two years of supervised release, along with a hefty fine of $30,000” (Ethics). I think it was a good idea that she was incarcerated in a prison, but I really think she should have stayed for at least a year because she lied to investigators. I don’t take lying very lightly, and the fact she had her broker in on it made matters worse. Everyone who was arrested during the downfall of ImClone’s stock tumble were just trying to avoid a big loss. It is sad that you have these top high class humans only thinking of themselves, greed gets you nowhere in life except killed. According to the Washington Post the maximum penalty for each count is five years in prison and a $250,000 fine. It is sad to think when you have the high class with money getting lighter fines and sentences than someone of the lower
First we have to know what exactly is insider trading. Insider trading refers to “the illegal practice of a shareholder in a public company who buys and or sells stocks in that …show more content…
Prosecutors claim that Stewart sold her shares after her broker informed her that ImClone’s founder were attempting to dispose of their stock. The court found Martha Stewart “guilty of conspiracy, four counts of obstruction of justice, and two counts of giving false information to federal authorities” (n.d.). Martha Stewart was sentenced to “five months in prison and two years of supervised release, along with a hefty fine of $30,000” (Ethics). I think it was a good idea that she was incarcerated in a prison, but I really think she should have stayed for at least a year because she lied to investigators. I don’t take lying very lightly, and the fact she had her broker in on it made matters worse. Everyone who was arrested during the downfall of ImClone’s stock tumble were just trying to avoid a big loss. It is sad that you have these top high class humans only thinking of themselves, greed gets you nowhere in life except killed. According to the Washington Post the maximum penalty for each count is five years in prison and a $250,000 fine. It is sad to think when you have the high class with money getting lighter fines and sentences than someone of the lower