Why Did Martha Stewart Go To JAIL

undercoverspill

Martha Stewart being sent to Prison was a shocker to many. How Could the  world's greatest homemaker become a felon. Martha just wanted to focus on her salad, but the media wanted answers.  We take a look back at the Martha Stewart scandal that sent her to jail and find out what happened.  Martha's Mess 0:00 Intro 0:32 Martha's Legacy 1:16 Stock Market 2:31 Public Scrutiny  3:32 Martha Goes to Court 4:35 Prison Bound 5:25 The Return 6:17 Outro

Transcript

00:00Before popular TV personalities like Rachel Ray came along, there was someone else that

00:15was seen as a warm motherly figure to millions around the globe. However, her perfect image

00:20soon would change following unexpected controversy. Let's take a look back at America's number

00:26one homemaker Martha Stewart. And find out what actually happened.

00:46Martha for decades dominated the lifestyle and do-it-yourself industry. She offered affordable

00:51tips and tricks for average people when it came to cooking, gardening, crafting, and

00:56home decor. Stewart was an all-around jack of trades that many had come to trust over

01:01the years. Her magazines, books, product line, and TV show were all doing extremely well.

01:09Her brand did not have one single blemish. After many successful years, things would change.

01:16In the early 2000s, Stewart was heavily invested in the stock market.

01:21Martha had her own publicly traded company which held all of her licensed assets.

01:26Being an involved prime player in the stock market. She was selected to be one of the new board of

01:33directors for the New York Stock Exchange. It was another big accomplishment for Martha,

01:39as there was only 27 members total. Having such a prestigious position and being in the know has

01:45its benefits. A biopharmaceutical company that focused on cancer treatment, called I'm Cloned Systems.

01:53She held almost 4,000 shares of the company. It had great potential to become a success and seemed like

02:00a worthwhile investment. However, after the experimental drug, failed to get FDA approval.

02:06The stock quickly tanked in the market and many people who invested would take big losses.

02:13Everyone with the exception of Martha and a few other executives.

02:18Apparently, some inside information was spread before the announcement of the failed FDA approval.

02:23Those in the know, sold their shares of the company days before making a substantial profit.

02:30In the months that followed when more details emerged.

02:34Martha being a high-profile investor and a board member drew heavy media attention.

02:40Including a Newsweek cover headline titled, Martha's Mess.

02:43Martha would even be grilled about the stock on her morning show segment for CBS.

02:49Well, we're going to make salad.

02:51We are, but first let me ask you a few things about all this. You've released a statement saying

02:55that you were not involved in any insider trading.

02:58And I want to focus on my salad because...

03:00One more question.

03:00That's why we're...

03:01Already resolved in the very near future and I will be exonerated.

03:05I know that ridiculousness.

03:07She decided to resign from her board of directors position after the public scrutiny.

03:12In the summer of 2003, Stewart was indicted by a grand jury on nine counts for the insider

03:20trading related allegations.

03:22When she sold her stake in the company, the shares cashed out at approximately $227,000.

03:30Following the questionable trade that was made at the ideal time, Stewart and her broker

03:36claimed that they had made a prior agreement to sell her shares if the stock price ever fell

03:40below $60.

03:41Upon doing research, congressional investigators found no record of a stop-loss order.

03:48The primary purpose of the U.S. Securities and Exchange Commission is to enforce the law

03:53against market manipulation.

03:56The person who led the investigation and brought charges against Martha was James Comey.

04:01Meet the man who wants to put Martha Stewart in jail.

04:04Martha Stewart is being prosecuted not because of who she is, but because of what she did.

04:10Part of our mystique is we win almost all of our cases and we bring a case...

04:15When we bring a case, people take a deep breath.

04:19Stewart was found guilty in the six-week trial that followed.

04:22Martha was sentenced to serve five months in a federal correctional facility.

04:28Five months of home confinement.

04:31And was ordered to pay a hefty $30,000 fine.

04:34I will be back.

04:37Whatever I have to do in the next few months, I hope the months go by quickly.

04:42I'm used to all kinds of hard work, as you know, and I'm not afraid.

04:47I'm not afraid whatsoever.

04:49I'm just very, very sorry that it's come to this, that a small personal matter has been

04:55able to be blown out of all proportion and with such venom and such gore.

05:03I mean, it's just terrible.

05:05The world watched as she was hauled off to jail.

05:09After release, she was given an ankle monitor and two years of supervision.

05:14The prison stint didn't leave a black eye on Martha, as many people expected it to.

05:20She quickly returned to daytime television with the popular Martha Stewart show.

05:24To many people, she became even more relatable because she wasn't Miss Perfect.

05:31Nobody's ever invited me on.

05:33Well, they did invite me once.

05:34What happened?

05:35Well, for some reason, they didn't let me go on.

05:37It was during probation.

05:42They said to use my thumb, but I've been thumbprinted like a lot of times and I'm not.

05:48I'm not going there.

05:50I'm not going to let me go on.

05:52Her relationships actually became more broad as a result of the prison stint.

05:56And her products continued to sell well.

06:00Martha was able to poke fun at herself, which many people thought was commendable.

06:05What do you think about this story?

06:08Did Martha legal woes affect your opinion of her?

06:10Who do you prefer, Rachel Ray or Martha?

06:15Leave a comment below and let me know.

Category

Transcript

Recommended