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The prison sentence punctuated a chain of events that began on Dec And in May, federal prosecutors accused Larry F Just last week, Cedarbaum again denied new trials for Stewart and Bacanovic, this time saying there was "overwhelming independent evidence" to support the guilty verdicts I'm used to all kinds of hard work, as you know, and I'm not afraid Peter Bacanovic, the high-powered stockbroker who was convicted along with Stewart of lying about her stock sale in December 2001, received the same sentence of five months in prison and five months home confinement The judge noted she had received more than 1,500 letters from Stewart supporters across the country pleading for leniency "The whole atmosphere of the trial was one about a crime that was never charged and never happened," said Walter Dellinger, a lawyer hired specifically to handle the appeal 81 on the New York Stock Exchange Stewart and Bacanovic always maintained she sold because of a preset plan to unload the stock when it fell to $60 The juror issue and the perjury charges against Larry Stewart, no relation to Martha Stewart, are expected to form the basis of Martha Stewart's appeal to the 2nd U 27, 2001, when Stewart, in a brief phone call from a Texas tarmac on her way to a Mexican vacation, sold 3,928 shares of ImClone Systems Inc , a biotechnology company run by her longtime friend Sam Waksal The star witness against the pair was Douglas Faneuil, a young former brokerage assistant who vividly described Bacanovic's order when he learned Waksal was trying to sell: "Oh my God And she vowed: "I'll be back Whatever I have to do in the next few months, I hope the months go by quickly " Additionally, lawyers said Friday they will argue that prosecutors inappropriately suggested at trial that Stewart was charged with insider trading â€â€? a count never included in the indictment against her In April, lawyers for both defendants accused one juror of lying about an arrest record in order to get on the trial "What was a small personal matter became over the last two and a half years an almost fatal circus event of unprecedented proportions spreading like oil over a vast landscape, even around the world," Stewart said "She has brought a measure of beauty to our everyday world with refined color schemes, floral arrangements, and culinary delights," he said ImClone announced negative news the next day that sent the stock plunging But Cedarbaum, citing nationwide confusion over a recent Supreme Court ruling on sentencings, allowed Stewart to postpone the sentence while her lawyers appeal her conviction â€â€? a process that could take months, and that legal experts have called an uphill battle Circuit Court of Appeals " Then, in an extraordinary change of demeanor, Stewart walked down the courthouse steps, approached a microphone and denounced the scandal as full of "such venom and such gore â€â€? I mean it's just terrible At his own sentencing, Bacanovic told Cedarbaum he deeply regretted "the pain and the sorrow" the case had caused his family, friends, colleagues and clients " Investors sent the stock of Martha Stewart Living Omnimedia up 37 percent, or $3 "I believe that you have suffered, and will continue to suffer, enough," the judge said S Stewart resigned as CEO of the company when she was indicted last year and gave up her seat on the board after she was convicted "Most of the good works cited by both defendants â€â€? showing kindness and compassion for friends, family, staff and colleagues going through difficult times, and acting as a role model for others in their professional lives â€â€? are what one should expect of decent, hardworking people," they wrote Prosecutors alleged that Bacanovic, now 42, ordered his assistant to tip Stewart that Waksal was trying to sell his shares " Prosecutors, as they did when Stewart was indicted and throughout the trial, portrayed the case as a matter of preserving the integrity of government investigations I will be back "She has stood for the values of quality and making products as perfect as possible Just before she was sentenced, Stewart â€â€? who during her trial spoke only to declare her innocence â€â€? rose from her seat and, her voice breaking almost to the point of sobs, told the judge she feared her life would be "completely destroyed But she said a prison term was appropriate because "lying to government agencies during the course of an investigation is a very serious matter, regardless of the outcome of the investigation " But the verdict on March 5 â€â€? guilty on four counts apiece for Stewart and Bacanovic â€â€? set off a string of events nearly as dramatic as the trial itself " Stewart, who was also ordered to spend five months confined to her home and fined $30,000, was allowed to remain free pending appeal District Judge Miriam Goldman Cedarbaum she was sorry that others had been hurt by the scandal Cedarbaum denied a request for a new trial, saying there was no proof the juror lied or was biased S 17 to close at $11 Defense lawyer Robert Morvillo had asked the judge for a sentence of merely probation and community service working with poor women She remains its leading creative force and holds the title of founding editorial director While she did not admit guilt in court â€â€? a move that could have jeopardized her appeal â€â€? Stewart took pains to tell U Get Martha on the phone He said Stewart "knows she's not perfect" and deserved mercy Stewart who willingly take the steps to lie to officials when they are under investigation about their own conduct, those citizens should not expect the leniency that Ms But the woman who saw her gracious homemaking empire crippled over a single transaction smiled boldly into the cameras outside to denounce her treatment, pitch her company and vow: "I'll be back Stewart, a Secret Service ink expert, of lying repeatedly in his testimony at the trial â€â€? mostly about the role he played in ink-analysis testing of a stock worksheet Stewart seeks," prosecutor Karen Patton Seymour told the judge The sentence was the minimum possible under federal guidelines " She pleaded for leniency: "My hopes that my life will not be completely destroyed lie entirely in your hands " Smiling and showing her well-honed comfort with TV cameras, she even suggested fans could "continue to show your support" by subscribing to her magazines and buying her line of homemaking products Cedarbaum accepted a defense request to recommend to federal prison officials that Stewart serve her time at a minimum-security facility in Danbury, Conn , close to her home in Westport "Citizens like Ms In a four-page letter to the judge on the eve of sentencing, Stewart touted her company's success and said she was still "abysmally confused and ill prepared for what is described to me as the next step in this process Stewart saved $51,000 " Prosecutors also released the pre-sentencing letter they sent to the judge, a document that brushed aside defense claims Stewart and Bacanovic should get lighter sentences because of exemplary conduct in their lives " It was signed, "Most sincerely, Martha Stewart Stewart Sentenced to 5 Months in Prison Jul 16, 6:47 PM EST Choking back tears and pleading for leniency, Martha Stewart was sentenced to five months in prison Friday for lying about a stock sale Arguments before U â€â€?â€â€?â€â€? On the Net: Stewart defense: http://www The securities fraud charge alleges she deliberately deceived shareholders in her company, Martha Stewart Living Omnimedia, when she declared in 2002 that she was innocent sec District Judge Miriam Goldman Cedarbaum are set for Nov Continuing her public defense, Stewart posted the court filing on a Web site she has used to air her side of the story Stewart also posts supportive e-mails from fans and newspaper columns that argue she is innocent 5 to respond to the filing The government has until Nov The two counts Stewart wants dismissed account for 15 years and $1 12 S Stewart's lawyers say the charge is unprecedented and violates her constitutional rights The lawyers said in court papers the obstruction count should be dismissed because none of Stewart's statements to investigators could have hindered an investigation by regulators into her stock sale gov The charge is much more difficult to prove in a criminal case The suit, which was dismissed Friday, was filed by shareholder Monica Beam com Securities and Exchange Commission: http://www Stewart Seeks Dismissal of Two Counts Oct 7, 9:16 AM EST Martha Stewart, facing a January trial on charges surrounding a 2001 stock sale, has asked a judge to throw out two of five counts against her in a federal indictment She also claimed that MSO directors failed to ensure Stewart would conduct her personal, legal and financial affairs in a way that would not harm the company Stewart and Bacanovic are to go to trial Jan "By criminalizing speech by a woman defending her reputation, speaking out against false congressional allegations and asserting her innocence, it violates the First Amendment," said the 122-page filing marthatalks The sale came just before ImClone stock plummeted on a negative government report about the company's cancer drug Erbitux A spokesman for federal prosecutors, Michael Kulstad, said he had no comment "It is inflammatory, irrelevant, and insinuates that Martha Stewart committed insider trading when there is no insider-trading charge in the indictment," the lawyers said 18 stock on Dec The counts, obstruction of justice and securities fraud, account for half of the potential prison time Stewart would face if convicted 27, 2001, because she had been illegally tipped that the family of ImClone founder Sam Waksal was planning to sell shares, and then lying about it Beam claimed Stewart breached her fiduciary duties to MSO in selling her ImClone Systems stock and in statements she made regarding the sale The five federal counts in the indictment carry a total sentence of 30 years in prison and fines of $2 million The indictment accuses Stewart of selling shares of ImClone Systems Inc In a separate development, a Delaware judge dismissed a shareholder lawsuit on Friday that claimed Stewart hurt her company by her involvement in the ImClone case Stewart's lawyers also object to a section of the indictment that the government labeled "background" but that the lawyers contend is really inflammatory language that could mislead a jury While securities regulators filed a civil suit charging Stewart with insider trading, the government did not include the charge in its indictment 25 million Under federal sentencing guidelines, Stewart would likely face far less time in prison if convicted |
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