Stewart convicted of four felonies

[Gunit_Sangh]

Martha Stewart was convicted Friday of all four felony charges against her, as a jury rejected her argument that she had no direct knowledge of insider trading and decided she had acted to cover up the trades.

Stewart was convicted of one count of conspiracy, two counts of making false statements and one count of obstruction of justice. Trading was immediatedly halted Friday in shares of Martha Stewart Omnimedia (MSO), which had jumped higher in afternoon trading, with investors betting that Stewart would be acquitted.

Earlier today, the judge ruled that prosecutors presented sufficient evidence for the jury to consider a perjury conviction of the trendsetter's former broker.


rest of story


http://www.usatoday.com/money/media/2004-03-05-stewart_x.htm

this sucks

[Paragon]

1. It's a good thing.

:silly:

[Richardo]

I'm laughing my ass off....

I swear I did not see that one coming... :D

[leesa]

40. It's not a good thing until the Kenny Boy and the GOP sleaze are

behind bars. Putting Dems in jail for minor offenses but allowing Republicans, who do it to the tune of billions, to go free is NOT a good thing.

[PaDUer]

2. Ken Lay??!!

WHY isn't he in trial and jail!!

[Junkdrawer]

68. Martha has been convicted for his sins (The Passion of the Martha???)

:evilgrin:

[La_Serpiente]

3. Now when are they going to go after

Enron, WorldCom, Global Crossing, and everyone else?

The amount Martha took pales in comparison to what these sleezeballs stole.

[Warpy]

12. They're not

That's what this whole dog and pony show was all about.

[markses]

14. They have gone after Enron, Worldcom, etc.

Almost everybody concerned with the Enron affair is already either under indictment or convicted.

Worldcom people are under indictment.

Adelphia people are under indictment.

None of this has any bearing on whether or not Martha Stewart committed the actions that she has been convicted of - actions which ARE ILLEGAL.

[TXDemGal]

63. "Almost everybody" at Enron, except KENNY BOY!

And I'll wager dollars to doughnuts that Lay will never been indicted much less see the inside of a cell at Club Fed. The so-called Justice Department has already prepped us for this result by running AP wire stories that Lay was such a "hands-off" CEO (yeah, right) that there's little chance of indicting him for anything.

BushCo takes care of its own, and Lay is no exception.

[markses]

75. Please outline your (no doubt) extensive knowledge of the

actions of Kenneth Lay with respect to the any fraud, embezzlement, or other violations of the criminal statutes.

Please provide as much detail of these violations as you can. I will reciprocate by laying out the complaints against Mr. Fastow and Mr. Skilling, as I understand them.

But please go first and explain what charges should be brought against Mr. Lay based on your knowledge of the facts of the matter.

[Jackpine Radical]

4. That'll teach the b***** to contribute to Al Gore.

[whistle]

23. Uhhmmmmm......

...Martha is one of us? A democratic underground contributor who has made good in this card stacking economy of neo-con vultures, now brought down and prosecuted for a crime that the well positioned in our society are doing day in and day out? After-all, what is insider trading? A CEO and the various members on a board of a big corporation own stock in the very companies that they run and make private, secret decisions on mergers, acquisitions, new products introduced, etc., so that the employees who participate in profit sharing and other stock holders not in the loop are mislead into buying stocks that these people already know will be falling in value. Hey, mutual funds managers consider that one of their fundamental tools in padding their own portfolios. And then of course, there is the WTC/9-11 cover-ups of massive insider trading and tips that the present Bush insiders got wind of. What about that? Does Martha take the fall for all of these? Come on back Martha, we love ya. Don't expect GW to issue the pardon no matter what you contribute to the ReTHUGlican war-chest. That bunch has its own agenda and we democrats plan to bust it wide open.

[Lorien]

47. "Come on back Martha"?

She never left, as far as I know. She's always been a Dem.

It's not about the petty crime (in their world, it is petty and usually goes unpunished)it's about the media. The media frenzy on Martha accomplishes several things a.) distraction from Bush* contributers who are unpunished corporate criminals of the worst kind. b.)women aren't supposed to be successful and wealthy. Only white men can be less than beloved yet still applauded for their achievements. c.) Only Dems get convicted of felonies. Repugs only get as far as "indicted".

[The Stranger]

5. 4,000 shares of stock. How many m(b)illions of shares did the Enron crew

lie about? The most anyone is doing there is 10 years.

[tom_paine]

8. More to the point, how about Bunnypants* and Harken?

Yeh. We'll see that the day the American Nazi party comes out with it's scathing investigation of Hitler's financial misdeeds.

[ignatius]

18. Exactly right, he WAS an insider, the CEO and sat on the account-

ing board and was privy to the financials and sold 2 weeks before the lousy financial report was due out.

It would be awesome if CBS,CNN or another media entity brought this up, but I won't hold my breath waiting for that to happen.

[markses]

17. That is immaterial

Did Stewart commit these crimes. What Andrew Fastow or Scott Sullivan did elsewhere has no bearing on that question.

[The Stranger]

22. Looking at my post again, no, I don't think that was the question.

Try again.

[screembloodymurder]

64. Immaterial except for this

http://www.cbsnews.com/stories/2004/03/05/opinion/courtwatch/main604368.shtml

The point is she was targeted and convicted on heresay.

[markses]

73. First of all, the term is "hearsay," not heresay

Second, Mr. Faneuil's statements were not hearsay as defined in the federal rules of evidence.

http://www.law.cornell.edu/rules/fre/rules.htm#Rule801

If they were, they would not have been admitted.

Third, the circumstances surrounding both the actions of the trade itself and the subsequent development of the false story were at issue, and that issue was decided by the jury. Given what I've seen on the case, I think reasonable people can agree that the jury came to a reasonable judgment about the facts of the matter.

[Florida_Geek]

6. She looked guilty from the LACK of Defense

that her team put on IMHO.

[Snellius]

13. I agree. How long does it take for people to wake up?

Martha and her attorneys seemed to still be in denial about the kind of politicized justice they are up against. Fascism with a smiley face.

[ElsewheresDaughter]

7. Robert Durst found NOT GUILTY...stop the world i wanna get the fuck off

[KoKo]

9. I can't believe she would go to jail for this, with all the crooks running

around loose who did FAR worse than she did.

[PaDUer]

10. Write to the media..

let them know we want Ken Lay in trial..must've been a R judge/jury!

[LSparkle]

16. absolutely

I don't consider myself a big Martha fan but this just stinks.

[markses]

11. Stewart performed criminal actions and deserves to pay the penalty

It's all a conspiracy here. How about this: She got inside information, and dumped her stock on that basis, then attempted to cover up that action? You know what? I believe it. And you know what? It IS a CRIME.

Whether or not Bernie Ebbers or Ken Lay are ALSO convicted for similar offenses is immaterial here. The question is: Did Stewart perform these illegal actions. I'm with the jury on this, and I think the behavior on this question by most DUers is abysmal.

One person says: "Stewart going to prison and OJ free. Yeah, that makes sense."

Well, of course it doesn't make sense, but the status of OJ's actions or behavior has nothing to do with the question at hand. OJ was vigorously prosecuted, and just happened to have persuasive defense attorneys. The vigorous prosecution does not appear selective, if we see that all the big name CEOs from the late 1990's-early 2000's corporate scandals are either under indictment, or have already been convicted. Sam Waksal is in jail for the same thing Stewart was just convicted of. Andrew Fastow will begin a 10 year federal prison term shortly, and Jeff Skilling was brought in handcuffs to Federal Court less than 2 weeks ago. What's the fucking problem. The Rigas are under indictment, Bernie Ebbers is under indictment, the rest of the Worldcom crew is under indictment, and the Enron cabal have been, for the most part, convicted already.

STEWART - gasp - may actually be guilty of the charges against her. And the jury, having heard the case in full, may have even made a good decision. Whether she is a Democrat or a woman does NOT seem to me to have anything to do with it at all.

[windansea]

20. shocking

a voice of reason speaks

[orwell]

24. Blind Justice

I agree with you. She has been convicted. She will go to jail.

Where I don't agree is that equal protection is immaterial. In other words, the people here have the right to raise issues about selective prosecution. The justice system in this country is far from being blind.

O

[markses]

25. On what basis do you charge or even speculate about selective prosecution?

Where do you see it?

Are other cases of this kind discovered and prosecuted? I would argue, yes. Are they vigorously pursued by the SEC and Justice Dep't. Again, yes.

[sadiesworld]

28. Name the case where the prosecutor didn't have the goods to

prosecute for insider trading but went ahead on obstruction of justice.

[orwell]

57. Bodies of Evidence

I believe that my defense was for the right of some posters to claim selective prosecution. My assertion is that justice is not blind.

I spent some years in the securities business at an options trading desk for a private investment fund. I dealt every day with large New York blue blood brokerage houses. Martha's case does not even come close to some of the illegal activity I personally witnessed. I ended up leaving because complaints to my superiors about the lax ethical and legal standards fell on deaf ears. They essentially laughed at my naivete. Most of them are still in business and very, very, wealthy.

But then, my experience is anecdotal. If you want to assert the converse to my statement, that is your right. Your position is as indefensible as mine. How do you prove something that didn't happen ie. someone wasn't charged when they should have been.

Here are some interesting takes from interesting places:

Martha

http://www.cato.org/dailys/01-24-04.html

http://slate.msn.com/id/2094441/entry/2094442/

Harken

http://www.house.gov/judiciary_democrats/bushcorpltrattach72402.pdf

Have a good weekend.

O

[Cassandra]

44. Waksal's daughter got more insider info...

and traded on it but you don't see her being indicted, do you? What Martha did was seriously stupid but I don't think she should get jail time for it. A HUGE fine would have been sufficient. She didn't really have insider info; she knew insiders were selling but not why. Jeff Toobin was right; she should have just kept her mouth shut. What bothers the rest of us is the constant press coverage that treats this like corporate corruption, which it isn't, as well as the eagerness with which which the Feds have pursued this. As big a target as Martha was, she was really small potatoes in the grand scheme of things.

[jtb33]

61. Yes BUT

Waskal's daughter didn't try to cover it up!!

Everyone seems to be forgetting that Stewart was NOT on trial for insider trading!!!

[RossMcLochNess]

56. Thanks Markses for summing up what I was thinking...

it saves me from having to say it. For some reason there's a misconception that no one has been prosecuted in the wake of these corporate scandals. That misconception is completely wrong. People need to educate themselves.

[papau]

15. Bush's lawyers telling him to not sell because it would be insider trading

SEC Lawyer notes - that he admits are somewhat in error - lead to Martha's conspiracy, obstruction of justice and two counts of making false statements – and her brokers (Bacanovic, 41) making false statements, conspiracy, perjury and obstruction of justice - damn good thing they acquitted him on the making and using of false documents.

Yet we have letters from Bush's lawyers telling him to not sell because it would be insider trading - and he sells - and nothing is done.

[whistle]

48. well it's a matter of....

...who is above the law and who isn't, eh? Also, there is no clear cut definition of insider trading is there? If there is, lay it out right here in 20 words or less please. Not some 300 page legal code.

I'm inside and my name is Dick Chainy (not a VP). I know what's going to happen to a company in the next 24 to 76 hours. I own stock and I guess-timate based on that knowledge that stock values will dive when word gets out, so I send my broker/portfolio manager an order to sell everything (no explanation, just get out before everyone else panics and the stock actually falls). I'm another person named George Wm Shrub, and a close friend of the family calls who I know works for someone who represents an executive with that same company who leaks to him, that something is going to happen (not saying what that something is specifically), but it doesn't require rocket science to know if he doesn't do something quick, he'll loss money. So he gives the order to sell, no reason but to himself he hopes to cuts his losses. Three days later the news becomes public, a bunch of stockholders not in the loop, loose big time. Have these two guys committed a crime? Should they be prosecuted? If guilty, do they go to jail? Who is above the law who has to play by the rules, win or loose? Is this part of GW's vision for America?

[papau]

55. Short Definition - but I agree that needed 300 pages make the crime a

specialty!

Person trades "on the basis of" material nonpublic information when the person purchases or sells securities while aware of the information (the misappropriation theory of insider trading - a duty of trust or confidence was owed by a person receiving information....a threat to the integrity of our markets).

[Dogmudgeon]

19. To be overturned on appeal

That's how it will probably go.

They're saying that the jury convicted her for insider trading but that charge was thrown out. So they convicted her on four garbage charges instead.

Most of it hinged on the fact that Stewart supposedly used the word "tipped".

Raw meat for the masses ... but the masses are getting wise to the game.

--bkl

[sendero]

21. I was really hoping...

... the jury would send the prosecutors a message. YOU HAVE BIGGER FISH TO FRY, GET F*CKING BUSY!

But, sometimes juries just arent' that bright.

[RedEarth]

26. She was involved in insider trading and deserves to go to prison

At one time she was a broker and at the time of the Imclone scandal she was on the board of the NYSE. One of the elementary laws you learn as a broker is insider trading is a felony....you do it, you get caught.. you go to prison.

[Pathwalker]

30. Yeah, Smirky is PROOF of that, eh?

Not like his Daddy got the SEC to ignore HIM, is it?

:eyes:

[ParanoidPat]

41. On what do you base that assumption?

The insider trading charge was DROPPED DUE TO LACK OF EVIDENCE!
This is tantamount to being convicted of and jailed for 'resisting arrest' for protesting that you have done nothing wrong. :evilfrown:

Meanwhile, has 'Kenny Boy' been charged with any crime in the largest corporate fraud in history?

[Auntie Bush]

27. Are we all safer now?

Wow! I don't have to keep a gun under my bed anymore!

[Ganja Ninja]

29. The legal process has worked. Martha broke the law.

I see no reason to defend her just because Smirks buddies and contributors haven't been prosecuted. If she's guilty she deserves punishment like any other criminal. I only wish the system would come down on Bush and his cronies

[Pathwalker]

32. Don't hold your breath waiting.

It could prove dangerous.

[Bridget Burke]

37. Ken Lay is doing fine

The Houston Chronicle gossip columnist mentioned him recently. He was seen at one of the "good" tables at La Griglia with a former mayor & the former mayor's wife. La Griglia is a mediocre restaurant favored by "Houston society"; apparently this means he's again in their good graces. (Hmm, will he be at Neil Bush's wedding this weekend?)

How many people did Martha throw out of work? How many lost their life savings because of her actions? Was she involved in rooking the people of California? Was she part of Cheney's energy group--plotting crimes on an international scale? Actually, the latter may be one reason that Kenny's still free; he knows a lot.

If she is guilty, fine her. Anyway, there will be an appeal. Guess it's time to subscribe to her magazine.

[ctex]

71. Damn, just as I was going to dine at La Griglia and then

go view "Touching the Void" at the River Oaks Theater.

I still don't know what possessed Bob Lanier to be seen in public with Ken Lay.

[TankLV]

52. You are right on that.

What makes me and others here extremely mad is that Niel (how would I know anything BOD member of a failed bank that cost us taxpayers billions), George (Ken who? - hey, I was AWOL on everything how would I know, THEY all lied to me, I just blindly did what THEY told me to do, it was THEIR fault, not mine, but hey I'll bask in any glory I can get from other peoples' dead bodies) & Dick (I've divested everything - opps - I thought I divested everything) have or will probably skate.

The Bush family has done more damage to this country than any other single family.

Can you say BILLIONS of dollars looted? THOUSANDS of lives lost?

Damn you babs and your evil spawn!

[underpants]

31. $38,000

[DoYouEverWonder]

33. So they threw the book at her for one trade?

It's not like they established a pattern of behavior here. Especially, when you have folks like Ken Lay, who screwed the whole state of CA and walked away with billions stashed in their off shore accounts, and so far few of them have even been indicted, no less convicted.

[TacticalPeek]

34. Don't do the crime if you can't do the time.

Next, Kenny Boy, :evilgrin: Unka Dick? :evilgrin: :evilgrin: :evilgrin:

[AngryAmish]

35. Why am I so happy?

I do like to see the high and mighty get laid low. She was prosecuted because she was high profile (and a Democrat.) I was not a shareholder in any of the involved companies.

It is a shameful glee in the misfortune of others that I am feeling right now.

[Bridget Burke]

38. Because you dislike high-profile Democrats?

(just a guess)

[AngryAmish]

39. Just the opposite

That is why I am so conflicted.

[Merlin]

50. schadenfreude

schadenfreude (pron. shädn-froid)
n. - Pleasure derived from the misfortunes of others

[whistle]

51. Understandable, Amish.....

...by the way, your Amana refrigerators suck.}(

[Lorien]

53. I will never understand

what makes people feel that way. Insercurity? Meanness? Spite? I just don't get it. :shrug:

Every human being has some sort of cross to bear. Wealth and success don't always translate to happiness. I've had a few millionaire friends over the years. Some came from poverty, others from abusive homes. None of them were by any means stress free. Sure, they don't have to worry day in and day out about money like the rest of us do- but hell, one of them has an eight year old with cancer. Money helps with that, maybe, but it offers no cure.

[AngryAmish]

66. I have meanness, insecurity and spite to burn.

[Piperay]

67. SUCKS!

I guess the public is supposed to feel good now that justice was done and a wrong doer is going to pay the price. Sorry, I will never feel that justice is being done till REAL criminals like Kenny Lay are the ones doing time. :argh: :mad:



OPS: I didn't mean to post this as a response to you, it was meant as a response to the Original.

[DEM FAN]

36. Ken Lay Is In His Houston Mansion Right Now Laughing Is Ass Off Right

Now. :-(

[Bridget Burke]

49. He owns a floor in a Houston high-rise, not a mansion...

That's the Huntingdon, 2121 Kirby Drive. Estimated cost of his 5-bedroom home is $8 million. There are some lovely old mansions in River Oaks, but he picked a slicker place far above it all.

He owned about 20 other properties in Houston, Galveston & Aspen but was forced to sell many of them (poor boy). His wife, Linda, opened a shop, "Jus' Stuff" (in the old Kenneltown building) to sell off the contents of those properties. I couldn't bring myself to darken the doorway but did some window-shopping: "more money than taste" comes to mind.

[whistle]

54. hahaha....

...and whose money was it?

[Sparkle]

42. Shapel Hartridge (a juror) sounds like a dick.

[Kimber Scott]

43. Damn. I was just going to subscribe to her magazine.

Do you think it will continue being published while she's in the can? Maybe they can just change the name, or something. "Insider Living," could work on two fronts.

[Dying Eagle]

45. wow

I didn't think they would convict her. I guess they is some justice in this country after all. I wonder if she knows how to knit a rope out of bed sheets, LOL

[manchu]

46. A little common sense here.

Yes we can argue until we all pass out that Ken Lay should be behnd bars. I totally agree. But that doesnt dismiss the fact that Martha committed a crime and was found guilty. Are we to dismiss criminals that vote democratic because Ken Lay didnt get caught? The guy from Tycho was convicted and the sharks are slowly circling the enron crew. Now hopefully someone cuts a deal and rats out Kenny Boy and we can go home happy. But to summarize, Martha did the crime and she should be punished, period. Personally I dot think shes going to do any hard time. Maybe 2 years in a minimum security facility with the golf course in the back. She might do the "weekend" jail thing. Dont feel too bad for Martha, shes not going the catch the hell an average joe or jane would catch.

[joeunderdog]

58. Garden variety stock tip. Happens at every country club, every day.

She acted on information about an employee of the company and not about the company itself. Doesn't necessarily make it right, but it's not the best use of prosecuters time. And it certainly shouldn't be garnering the attention of the crime of the century, either.

Don't be naive...insider tips are industry standards and they're why those people drive Beamers. That's where the "buy on rumor, sell on news" thing came from. Think about it. Every time you see volume and price increases of a stock, then good news, it inevitably gets a short pop and a decline by the time you can call Ameritrade.

The reason this court decision stinks, in my opinion, was because it was a form of entrapment--they accused her of something she wasn't really guilty of, then they caught her in a lie and dropped the initial charge...A-LA, CLINTON. This was the Republican strategy in impeaching Clinton, and it worked. Get him on record enough so that he inevitably tells a lie. It was a calculated strategy, and they had no idea what they would actually catch him on, but they hit paydirt.

So now they have another big Dem in their grip and I'm left wondering why they aren't putting Kenny and co under oath with the EXACT SAME STRATEGY. It works when you want it to.

[Lorien]

60. Exactly

Local news here is saying that she could get a 20 year sentence.Unfreakingbelievable. I feel awful for her 1000 or so employees. :-(.

[symbolman]

59. The accordingly

that means we can successfully prosecute BUSH for the same Crimes ala Harkin?

USE the same LAWS..

maybe we should all be shouting loudly as a group at the FEC and demanding that BUSH be held liable.. It was never really finished as I understand it..

[Zomby Woof]

62. Good!

By all accounts, she is a miserable human being, who treats her staff like shit, and is well-despised by her neighbors. If she is a Dem, we should want no part of her, because she is a disgrace as a person, a liar, and no one is above the law. She is a megacorporation unto herself, so I find it satisfying she was found guilty, especially after all the recent talk she would have some charges dismissed.

All this crap that just because Ken Lay and his ilk got away with it is NOT a justification for letting Stewart break the law. Extending that "logic" would mean not convicting anybody, at anytime, just because some have gotten away with it. That is a precedent we don't need.

Hope she feels like shit.

[Disturbed]

65. Justice?

I don't know enough about this situation to make that judgement. Seems that she made the classic mistake though. CYA instead of just admitting that she made a mistake. Perhaps arrogance played a part. From what I have read, she has lost a whole lot of money, plus Attorney fees because of her bad decisions. I don't bare her in ill will and suspect that the case may be overturned and if not she will get a brief stay at a country club type of "Correctional Center".

I do feel that someone brave would go after Shrub & Cheney. It sure does seem that thier cases are indictable.

[NewYorkerfromMass]

69. Bullshit. eom

[newyorican]

70. so?

:shrug:

[NewYorkerfromMass]

72. She may serve jail time

unlike Ken Lay.

[Snellius]

74. This is a flagrant abuse of power.

Guilty of what? Lying about doing something that wasn't even a crime. This is obviously an attempt by the Bush Justice Department to take the heat off their mega corporate cronies, and use Stewart as a poster child, to put a liberal and female face on a kind of corporate corruption that Stewart had nothing to do with. All this will do is destroy an innovative company and put more people out of work.