Most Talked-About Controversies Linked to Martha Stewart

A closer look at the most debated and controversial moments involving Martha Stewart.

Martha Stewart is an American businesswoman, writer, and television personality best known for founding Martha Stewart Living Omnimedia. Her company focuses on home and hospitality, building a vast empire through publishing, broadcasting, merchandising, and e-commerce. She has authored numerous bestselling books, published Martha Stewart Living magazine, and hosted syndicated television programs such as 'Martha Stewart Living' and 'The Martha Stewart Show', making her a household name in the lifestyle and entertainment industries.

Sections (5)

Full Timeline Early Life & Education Career & Achievements Challenges & Struggles Controversies & Scandals

December 27, 2001: Sale of ImClone Systems Stock

On December 27, 2001, Martha Stewart sold all 3,928 shares of her ImClone Systems stock after receiving nonpublic information, avoiding a loss of $45,673.

June 25, 2002: Grilled on The Early Show

On June 25, 2002, CBS anchor Jane Clayson grilled Martha Stewart on the air about ImClone during her regular segment on The Early Show, to which Stewart responded by focusing on her salad.

October 3, 2002: Resignation from NYSE Board

On October 3, 2002, Martha Stewart resigned from the board of directors of the New York Stock Exchange.

June 4, 2003: Indictment by Grand Jury

On June 4, 2003, Martha Stewart was indicted by a grand jury on nine counts, including charges of obstruction of justice.

January 2004: Trial Begins

In January 2004, Martha Stewart's trial began, focusing on her ImClone stock sale.

March 2004: Conviction on Felony Charges

In March 2004, after a six-week jury trial, Martha Stewart was found guilty of felony charges, including conspiracy to obstruct, obstruction of an agency proceeding, and making false statements to federal investigators.

July 2004: Sentencing

In July 2004, Martha Stewart was sentenced to a five-month term in a federal correctional facility and a two-year period of supervised release (including five months of electronic monitoring).

2004: Confinement in Federal Prison Camp

Despite Martha Stewart's wish to be incarcerated in Connecticut or Florida, in 2004 she was confined in Federal Prison Camp in Alderson, West Virginia.

2004: Derivative Suit Dismissed

In 2004, a derivative suit brought by Monica Beam, a shareholder of MSLO, against Martha Stewart and other directors and officers of the company was ultimately dismissed by the Supreme Court of Delaware.

March 2005: Release from Federal Prison

In March 2005, Martha Stewart was released from federal prison after serving five months for felony charges related to the ImClone stock trading case.

August 2006: Settlement with SEC

In August 2006, the SEC announced a settlement in the civil case against Martha Stewart. She agreed to disgorge $58,062 and pay a civil penalty of $137,019, and was banned for five years from serving as a director, CEO, CFO, or any other officer role responsible for preparing, auditing, or disclosing financial results of any public company.

June 2008: UK Visa Refusal

In June 2008, the UK Border Agency refused to grant Martha Stewart a visa to enter the United Kingdom because of her criminal conviction for obstructing justice.