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 known for founding Martha Stewart Living Omnimedia. Her company focuses on home and hospitality, achieving success through publishing, broadcasting, merchandising, and e-commerce. She has authored bestselling books, published Martha Stewart Living magazine, and hosted syndicated television programs like Martha Stewart Living and The Martha Stewart Show, solidifying her influence in lifestyle and media.

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, according to the SEC, Martha Stewart sold all 3,928 shares of her ImClone Systems stock, avoiding a loss of $45,673. She received material, nonpublic information from her broker at Merrill Lynch.

June 25, 2002: Grilled on The Early Show

On June 25, 2002, Martha Stewart was grilled by CBS anchor Jane Clayson on the air about ImClone during her regular segment on The Early Show. Stewart responded by continuing to chop cabbage and stating, "I want to focus on my salad."

October 3, 2002: Resignation from the New York Stock Exchange Board

On October 3, 2002, Martha Stewart resigned from her position on the board of directors of the New York Stock Exchange, following a deal prosecutors had made with Douglas Faneuil, an assistant to Bacanovic, in connection to the ImClone stock trading case.

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 related to the ImClone stock trading case.

January 2004: Trial Begins

In January 2004, Martha Stewart's trial began. Prosecutors showed that Bacanovic had ordered his assistant to tell Stewart that the CEO of ImClone, Samuel D. Waksal, was selling all his shares in advance of an adverse Food and Drug Administration ruling.

March 2004: Conviction on Felony Charges

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

July 2004: Sentencing to Prison

In July 2004, Martha Stewart was sentenced to serve a five-month term in a federal correctional facility and a two-year period of supervised release for felony charges related to conspiracy, obstruction, and making false statements.

2004: Confinement in Federal Prison Camp

In 2004, Martha Stewart was confined in Federal Prison Camp in Alderson, West Virginia, despite her wish to be incarcerated in Connecticut or Florida.

2004: Derivative Suit Dismissal

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

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. This followed her conviction for fraud.

August 2006: Settlement with the SEC

In August 2006, the SEC announced that it had agreed to settle the civil case against Martha Stewart. She agreed to disgorge $58,062 and pay a civil penalty of $137,019. She also agreed to a five-year ban 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: Denied Visa to Enter the United Kingdom

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. She had been planning to speak at the Royal Academy on fashion and leisure industry matters.