Martha Stewart Stock Broker Faces Scrutiny for Alleged Wrongdoings

Martha Stewart's stock broker, Douglas Faneuil, is facing scrutiny for alleged wrongdoings. Faneuil is accused of tipping off Stewart about an impending sale of her ImClone Systems stock, allowing her to sell the shares before the price dropped.

Faneuil's actions were allegedly in exchange for a favor from Stewart. He had asked Stewart for a job at her company, and Stewart had agreed to hire him, but only after he had helped her sell the stock.

Faneuil's involvement in Stewart's stock sale was first revealed in 2003. He had sold the stock on Stewart's behalf, but only after Stewart had been tipped off about the sale.

Martha Stewart's net worth soared to over a billion dollars after her company's stock went public in 1999.

She listed her company, Martha Stewart Living Omnimedia, on the New York Stock Exchange in 1999, allowing her fans to own a piece of her media powerhouse.

The company's stock opened at $18 per share on the day it went public, and its price skyrocketed from day one.

Martha Stewart held a 96% stake in the company, making her wealth incredibly valuable.

She paid $195,000 to settle civil charges with the Securities and Exchange Commission, but never faced insider trading charges for the sale of her company's stock.

Martha Stewart raised $85 million to purchase the rights to her magazine, Martha Stewart Living, in 1997.

The acquisition of her magazine was just one part of her company's growth, which was fueled by her entrepreneurial spirit and business acumen.

Martha Stewart's stock broker career was not without controversy.

In 2003, Martha Stewart was accused of insider trading, which led to a highly publicized trial.

The allegations against her centered around her sale of ImClone Systems stock, which was a biotech company whose stock price was about to plummet.

This incident sparked a heated debate about corporate ethics and the role of CEOs in the stock market.

Martha Stewart maintained her innocence throughout the ordeal, but ultimately pleaded guilty to conspiracy, obstruction of an agency proceeding, and making false statements to federal investigators.

In her own words, Martha Stewart recounts a conversation with her stockbroker Peter Bacanovic in 2001 about her ImClone stock, where he advised her to sell.

She recalls saying "Good, sell" in response to his advice, which would later become a pivotal moment in her insider trading case.

The Securities and Exchange Commission alleged that Stewart acted on an "unlawful tip" from Bacanovic, leading to charges of securities fraud in 2003.

Stewart's friendship with ImClone CEO Sam Waksal was also scrutinized, as he denied giving her insider information about his company's new drug not receiving FDA approval.

Stewart's legal team advised her to "keep quiet" during the media fallout, which she now describes as "bad advice".

Lead prosecutor James Comey called Stewart's case "about lying — lying to the FBI, lying to the SEC, and lying to investors".

Stewart was ultimately convicted of conspiracy, making false statements, and obstruction of agency proceedings.

Martha Stewart's insider trading scandal was a major controversy that led to her conviction in 2004. She was accused of selling ImClone Systems stock based on confidential information from her broker.

The scandal centered around Stewart's sale of 3,928 shares of ImClone Systems stock on December 27, 2001, one day before the company's stock price plummeted due to negative news about its cancer treatment drug.