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Martha Stewart Scandal

 

Dec. 26, 2001: ImClone Systems Inc. founder Sam Waksal is tipped that the Food and Drug Administration will decline to review the company's application for its cancer drug Erbitux, then tips his daughter to sell her ImClone stock and tries to sell his own.

Dec. 27, 2001: Martha Stewart sells all 3,928 shares of ImClone that she owns. Prosecutors later contend she was tipped that Waksal was trying to sell his shares.

Dec. 28, 2001: The FDA makes its decision public. On Dec. 31, the first trading day after the news, ImClone drops 18 percent.

Jan. 7, 2002: Stewart's broker, Peter Bacanovic, tells Securities and Exchange Commission attorneys that he and Stewart had agreed on Dec. 20, 2001, to sell ImClone if it fell to $60.

Feb. 4, 2002: Stewart tells the SEC, federal prosecutors and the FBI that she had an agreement with Bacanovic to sell the stock when it fell to $60 per share.

June 12, 2002: Waksal is arrested and charged with insider trading. Stewart issues a statement repeating her assertion the sale came about because of the $60 agreement.

Oct. 2, 2002: Former Merrill Lynch & Co. assistant Douglas Faneuil pleads guilty to taking a payoff to keep quiet about the Stewart stock trade.

June 4, 2003: Stewart and Bacanovic are indicted on nine federal counts. Stewart resigns as chairwoman and CEO of her company but remains chief creative officer and a board member.

June 10, 2003: Waksal is sentenced to more than seven years in prison.

Nov. 7, 2003: Stewart tells ABC News she is scared of prison and adds, "I don't think I will be going to prison, though."

Jan. 27, 2004: Prosecutor claims in opening statements that Stewart sold ImClone stock based on a "secret tip," then lied to cover it up. Stewart's attorney compares case with the Big Brother novel "1984."

Feb. 3-4: Faneuil testifies that Bacanovic ordered him to tell Stewart that Waksal was selling stock. Faneuil claims Bacanovic pressured him repeatedly to cover it up.

Feb. 10: Stewart assistant Ann Armstrong testifies that Stewart personally altered log of a message Bacanovic left on the day Stewart sold ImClone. But Armstrong also says Stewart ordered the message changed back and never asked her to lie.

Feb. 27: Judge throws out securities fraud count against Stewart.

March 5: Stewart convicted on all charges; Bacanovic convicted on all but one charge, falsifying a document.

March 15: Stewart resigns from board of Martha Stewart Living Omnimedia Inc. but retains the title of founding editorial director.

May 18: Producers of "Martha Stewart Living" say TV show will be suspended after the current season.

July 8: Judge refuses to grant Stewart and Bacanovic a new trial based on perjury charges against Larry Stewart, a Secret Service ink expert who prosecutors say lied on the witness stand at Stewart's trial; he was later acquitted.

July 16: Martha Stewart and Bacanovic each sentenced to five months in prison and five months of home confinement for lying about a stock sale.

Sept. 15: Stewart announces she asked the judge to vacate the stay on her sentence so she can begin her prison sentence "as soon as possible" and "put this nightmare behind me."

Oct. 8: As federal inmate No. 55170-054, Stewart enters the Alderson Federal Prison Camp in rural West Virginia and is fingerprinted and strip-searched.

Dec. 8: Stewart's company says it will revive her daily homemaking show before a live audience, with celebrity guests and the help of "The Apprentice" producer Mark Burnett.

Dec. 22: In a Christmas message posted on her personal Web site, Stewart calls for sentencing reform and criticizes prison food.

Feb. 2, 2005: NBC announces plans for "The Apprentice: Martha Stewart," the second TV project announced for Stewart while still in prison.

March 4: Saying in a statement "there is no place like home," Stewart jets to her estate in suburban New York to serve five months of home detention.

 

 

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