New York
Federal investigators have warned Martha Stewart they plan to charge her with insider trading. Stewart became ensnarled in the downfall of flashy biotech executive Sam Waksal in December when she sold 4,000 shares in Waksal’s company, ImClone Systems, shortly before the stock tanked. Prosecutors believe Stewart made the sale after receiving a tip that the government had refused to clear ImClone’s new cancer wonder drug for sale. The mess has sent stock in Stewart’s own company, Martha Stewart Omnimedia, spiraling down 60 percent. Securities investigators sent word to Stewart’s lawyers last week that they were recommending she face civil securities-fraud charges. Prosecutors are mulling criminal charges.
The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
-
How will China’s $1 trillion trade surplus change the world economy?Today’s Big Question Europe may impose its own tariffs
-
‘Autarky and nostalgia aren’t cure-alls’Instant Opinion Opinion, comment and editorials of the day
-
Japan’s Princess Aiko is a national star. Her fans want even more.IN THE SPOTLIGHT Fresh off her first solo state visit to Laos, Princess Aiko has become the face of a Japanese royal family facing 21st-century obsolescence
