Martha Stewart Fraud Case Essay Example | Topics and Well Written Essays - 750 words

Martha Stewart Fraud Case - Essay Example The lucrative career of Martha Stewart includes caterer, business owner, home living expert and stockbroker. Martha Stewart Living Omni media can be considered as her success story which has turned from a catering business to a popular and well-recognized brand. According to an author, â€Å"To the degree that her business partners were prepared to help advance the success of Martha Stewart, she was prepared to work with them. To the degree that they got in her way, she was willing to roll right over them† (Daniels Ethics1 2). Peter Bacanovic was the stockbroker of Martha Stewart. She along with her stockbroker has been indicted for â€Å"making false statements and conspiracy to obstruct justice† (Reynolds 1). The Insider trading scandal threatened the career of Martha Stewart’s career. The scandal took place due to the association with the ImClone System. It is a biopharmaceutical company. Martha Stewart owned the stock of this company. However, the FDA refused to review the cancer drug Erbitux of ImClone system. It tumbled the stocks of the company. However, same thing occurred with the insiders of ImClone. Martha Stewart was the potential stock owner. She was one of the closest friends of CEO of the ImClone. However, she gave instruction to his broker to transfer the money invested in stock to the bank account of his daughter. Peter Bacanovic was also the broker of the CEO of ImClone, Mr. Sam Waksal. However, his daughter also has requested the broker to sell her stock capital. The CEO of ImClone was arrested due to obstruction of justice, bank fraud and insider trading. He was sentenced to seven years of jail. However, he got released after the five years of jail term.