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Non-Tech : Martha Stewart -- Scourge or Scapegoat
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To: Jeffrey S. Mitchell who started this subject2/27/2004 11:59:45 AM
From: Labrador  Read Replies (1) of 165
 
Judge in Martha Stewart Trial
Dismisses Securities-Fraud Charge

NEW YORK -- A federal judge Friday threw out the most serious charge against Martha Stewart -- securities fraud -- just before her trial goes to a jury.
The charge accused Ms. Stewart of deceiving investors in her company, Martha Stewart Living Omnimedia, by lying about her sale of ImClone Systems Inc. stock.
U.S. District Judge Miriam Goldman Cedarbaum left intact four other charges against the celebrity homemaker: conspiracy, obstruction of justice, and two counts of lying to investigators.
The judge also declined to throw out any of the five charges against Ms. Stewart's former stockbroker, Peter Bacanovic.
The securities-fraud count carried a maximum prison term of 10 years. Each of the remaining four counts against Ms. Stewart carries a maximum prison sentence of five years.
Ms. Cedarbaum issued her decision in a 23-page ruling just as lawyers began meeting with her to hammer out instructions she will give the jury when it begins deliberations next week.
Closing arguments in the trial are scheduled to begin Monday, with deliberations expected to begin Wednesday.
Ms. Stewart and Mr. Bacanovic are accused of lying to investigators about why Stewart sold 3,928 shares of ImClone stock on Dec. 27, 2001, just before it dropped on a negative government review of the ImClone cancer drug, Erbitux.
The securities-fraud count accused Ms. Stewart of trying to prop up the stock price of her company six months later by issuing false public statements about why she sold ImClone stock. Ms. Stewart at the time stood to lose $30 million for every dollar her company's stock dropped.
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