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, renowned for founding Martha Stewart Living Omnimedia. She built a successful brand focusing on home and hospitality through publishing, broadcasting, merchandising, and e-commerce. Stewart 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 on lifestyle and home decor.

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, avoiding a loss of $45,673, after receiving nonpublic information.

June 25, 2002: Grilled on CBS's 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 continuing to chop cabbage and focusing on her salad.

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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 following a deal prosecutors made with Douglas Faneuil.

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, leading her to step down as CEO and Chairwoman of MSLO.

January 2004: Start of Trial

In January 2004, Martha Stewart's trial began. Prosecutors showed that Peter 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, 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 after a six-week jury trial.

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: Incarceration in Alderson

Despite Martha Stewart's preference, in 2004 she was confined in Federal Prison Camp in Alderson, West Virginia due to concerns about media access and complications from Hurricane Ivan at other facilities.

2004: Conviction in ImClone Case

In 2004, Martha Stewart was convicted of felony charges related to the ImClone stock trading case.

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, was ultimately dismissed by the Supreme Court of Delaware.

August 2006: Settlement with SEC

In August 2006, the SEC announced it had agreed to settle the civil case against Martha Stewart. Stewart agreed to disgorge $58,062 and pay a civil penalty of $137,019 and was banned for five years from serving as a director or officer responsible for financial results of any public company.

June 2008: Visa Refusal by UK Border Agency

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.