Martha Stewart - GUILTY

Jim · Post by **Jim** » Fri Mar 05, 2004 10:33 pm

Wooooooo Hooooo - The system does work, and she'll be going off.

Maybe they can send her to Arkam?

Civ · Post by **Civ** » Fri Mar 05, 2004 11:08 pm

I've never had a business oriented mind and I'm having hell trying to figure just what exactly she originally did wrong. From what I understand, Martha got wind of her company stock about to plunge and she sold it all off before it went down too much. From what I see, her crime was prior knowledge of this event occurring before everyone else knew. Is this close?

I can understand the rest of the crimes like obstruction of justice and the rest, but I'm having trouble figuring out that initial count that stirred up all of this trouble.

Dead Man Wade · Post by **Dead Man Wade** » Fri Mar 05, 2004 11:12 pm

Basically, your description is correct, Civ. It's called 'Insider Trading' and is highly illegal.

Transfannabeel · Post by **Transfannabeel** » Fri Mar 05, 2004 11:15 pm

Originally posted by Civ
I've never had a business oriented mind and I'm having hell trying to figure just what exactly she originally did wrong. From what I understand, Martha got wind of her company stock about to plunge and she sold it all off before it went down too much. From what I see, her crime was prior knowledge of this event occurring before everyone else knew. Is this close?

I can understand the rest of the crimes like obstruction of justice and the rest, but I'm having trouble figuring out that initial count that stirred up all of this trouble.

basically right, but it was a friend's company that she owned shares of. Also I heard she only saved 200,000 dollars, which isn't much for her.

Civ · Post by **Civ** » Fri Mar 05, 2004 11:19 pm

So her crime is basically breaking a law that's along the lines of "No fair! You cheated!"? I hope that made sense to somebody else because it didn't sound like it made much sense to me.

Dead Man Wade · Post by **Dead Man Wade** » Fri Mar 05, 2004 11:23 pm

From http://www.sec.gov:

"Insider trading" is a term that most investors have heard and usually associate with illegal conduct. But the term actually includes both legal and illegal conduct. The legal version is when corporate insiders—officers, directors, and employees—buy and sell stock in their own companies. When corporate insiders trade in their own securities, they must report their trades to the SEC.

Illegal insider trading refers generally to buying or selling a security, in breach of a fiduciary duty or other relationship of trust and confidence, while in possession of material, nonpublic information about the security. Insider trading violations may also include "tipping" such information, securities trading by the person "tipped," and securities trading by those who misappropriate such information.

Examples of insider trading cases that have been brought by the SEC are cases against:

-Corporate officers, directors, and employees who traded the corporation's securities after learning of significant, confidential corporate developments;

-Friends, business associates, family members, and other "tippees" of such officers, directors, and employees, who traded the securities after receiving such information;

-Employees of law, banking, brokerage and printing firms who were given such information to provide services to the corporation whose securities they traded;

-Government employees who learned of such information because of their employment by the government; and

-Other persons who misappropriated, and took advantage of, confidential information from their employers.

Because insider trading undermines investor confidence in the fairness and integrity of the securities markets, the SEC has treated the detection and prosecution of insider trading violations as one of its enforcement priorities.

Make more sense?

Claypool · Post by **Claypool** » Fri Mar 05, 2004 11:23 pm

why Arkam? everyone always escapes from there. Its the worse jail i've ever heard of.

Transfannabeel · Post by **Transfannabeel** » Fri Mar 05, 2004 11:26 pm

Originally posted by Civ
So her crime is basically breaking a law that's along the lines of "No fair! You cheated!"? I hope that made sense to somebody else because it didn't sound like it made much sense to me.

Well its like doing something else so you can gain before everyone else knows. So you have a head start and cause people to lose all their retirement money.

Dead Man Wade · Post by **Dead Man Wade** » Fri Mar 05, 2004 11:28 pm

Exactly. If it had been stock in her own company, that would have been one thing. However, she was tipped off to confidential information that allowed her to sell off the stock before the bottom fell out. That's why she got in trouble in the first place.

Snake · Post by **Snake** » Fri Mar 05, 2004 11:29 pm

Originally posted by fort_max
From http://www.sec.gov:

Make more sense?

Martha's most likely gonna find out the hard way that "Inside Trading" takes on an entirely different meaning when you're behind the bars of a Federal Penitentiary...

Civ · Post by **Civ** » Fri Mar 05, 2004 11:32 pm

Originally posted by fort_max
From http://www.sec.gov:

Make more sense?

I think so, but I was trying to figure out how that hurts someone else until Transfannabeel answered that question. At first, I thought, "well, that's not much of a crime to warrant such a punishment" but now that Trans said this could screw a lot of people, then that's a whole new ballgame.

Dead Man Wade · Post by **Dead Man Wade** » Fri Mar 05, 2004 11:37 pm

Originally posted by Snake
Martha's most likely gonna find out the hard way that "Inside Trading" takes on an entirely different meaning when you're behind the bars of a Federal Penitentiary...

I could see her being sweetheart of the cell block.

Transfannabeel · Post by **Transfannabeel** » Fri Mar 05, 2004 11:56 pm

I like the SNL(or was it Mad TV, or some other show?) impersonations of her in jail from when she was being charged.

Snake · Post by **Snake** » Sat Mar 06, 2004 12:14 am

Originally posted by Transfannabeel
I like the SNL(or was it Mad TV, or some other show?) impersonations of her in jail from when she was being charged.

While we're on the subject of mocking Martha Stewart, does anybody remember the episode of Viva Variety where Agatha had the musical number "Stick it, Martha Stewart! (Here's some livin' advice I think you need)"?

Transfannabeel · Post by **Transfannabeel** » Sat Mar 06, 2004 12:37 am

Nope, I'm not sure I know what your talking about Snake.

Hawkeye · Post by **Hawkeye** » Sat Mar 06, 2004 1:24 am

yeah well they only escape from arkham when DC needs em for a story arc..as long as DC doesnt need Martha for a crime spree with the joker she'll stay in there:D

Transfannabeel · Post by **Transfannabeel** » Sat Mar 06, 2004 2:45 am

I hear DC is changing her name to MS. Crazy Sunshine:p

nmathew · Post by **nmathew** » Sat Mar 06, 2004 5:31 am

Martha wasn't nabbed for insider trading. That charge was thrown out by the judge.

She was found guilty of obstructing justice two counts of false statements to the government, and conspiracy (for lying to obstruct justice)

http://www.msnbc.msn.com/id/4429271/

Alpha Trion · Post by **Alpha Trion** » Sat Mar 06, 2004 6:16 am

Martha Stewart in prison: It's A Good Thing.™

Jetfire426 · Post by **Jetfire426** » Sat Mar 06, 2004 8:23 pm

I wonder what her sentence will be.... i doubt it will be the 20 yr... i hope she gets aleast 5...