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Martha S Essay

1063 words - 5 pages

The Beauty of Martha
Martha Stewart received the minimum sentence of five months in prison, plus five months of home confinement for lying to federal investigators about a stock sale that she called ''a small personal matter. The sentence came on a day when Ms. Stewart's supporters huddled in the courthouse in Lower Manhattan to cheer her on, and Ms. Stewart herself started to get teary eyed and animated.
The second of six children, Stewart grew up in Nutley, New Jersey, a working-class community near New York City. She worked as a model from the age of 13, appearing in fashion shows as well as television and print advertisements. She attended Barnard College in Manhattan, where she ...view middle of the document...

Her newfound fame took its toll on her personal life, as her marriage to Andy Stewart ended in divorce in 1990, after a bitter three-year separation. In 1991, Martha Stewart, Inc., became Martha Stewart Living Omni media, Inc., with the release of her magazine, Martha Stewart Living. Stewart's lifestyle empire soon grew to include two magazines, a checkout-size recipe publication, a popular cable television show, a syndicated newspaper column, a series of how-to books, a radio show, an Internet site and $763 million in annual retail sales. On October 19, 1999, America's most famous homemaker returned to Wall Street to see her company through its initial public offering on the New York Stock Exchange. At the end of the day, the price of each of 72 million shares in Martha Stewart Living Omnimedia, Inc. had jumped more than 95 percent and raised almost $130 million. Stewart herself controls 96 percent of the voting shares in her company and is worth $1.2 billion. In June 2002, Stewart again made financial headlines, this time for rumors of insider trading.
Martha was under investigation for selling hundreds of shares of the Clone Systems just prior to the Food and Drug Administration's refusal to approve the company's new cancer drug. The value of the stock dropped markedly after the FDA's announcement. Due to the investigation, Stewart resigned from the board of directors of the New York Stock Exchange in October, four months after she had joined. In June 2003, a 41page indictment charged was charged against Stewart with security fraud, obstruction of justice, conspiracy and making false statements to prosecutors and the FBI. She pleaded innocent to all charges and stepped down as chair and CEO of her Omni media empire. In February 2004, a judge dismissed the securities fraud charge, but a jury found her guilty of conspiracy, obstruction of justice and two counts of making false statements. Martha Stewart was sentenced to five months in prison and fined $30,000 that July. She served the first part of her sentence at a minimum-security prison in...

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