Martha Stewart Scandal

In: Business and Management

Submitted By emartin22
Words 1147
Pages 5
Describe the charges that were brought against the subject in the original indictment.
Charges against Martha Stewart and her broker Peter Bacanovic:
According to Associated Press (2003)
“Count 1: Conspiracy, filed against Martha Stewart and Peter Bacanovic. Conspired together to produce false information in the stock scandal. Maximum penalty: 5 years in prison, $250,000 fine. Count 2: False Statements, filed against Bacanovic. Lied claiming he spoke with Stewart and she told him to sell the shares when they reached $60 per share. He also lied about telling Stewart the stock price fell. Maximum penalty: 5 years in prison, $250,000 fine. Count 3: False Statements filed against Stewart. She lied to the Security and Exchange Commission, FBI and federal persecutors saying that she and Bacanovic made a prior arrangement to sale the stock if it fell below a certain figure. Maximum penalty: 5 years in prison, $250,000 fine. Count 4: False Statements, filed against Stewart. She was not honest in being tipped off that her family friend Waksel were selling their shares in Im Clone. Maximum penalty: 5 years in prison, $250,000 fine. Count 5: filed against Bacanovic. Making and using false documents. He changed paper documents making it look as if Stewart had previously told him to sell when the shares fell. Maximum penalty: 5 years in prison, $250,000 fine. Count 6: Perjury, filed against Bacanovic. He lied several times to the Security Exchange Commission agents about trading of ImClone and talks between him and Stewart. Maximum penalty: 5 years in prison, $250,000 fine. Count 7: Obstruction of Justice, filed against Baconovic. He deliberately tried to elude the SEC investigation. Maximum penalty: 5 years in prison, $250,000 fine. Count 8: Obstruction of Justice, filed against Stewart. She also tried to elude the investigation by…...

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