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"Martha Stewart is being prosecuted not for who she is, but because of what she did," insisted federal prosecutor James B. Comey, unveiling the federal indictment against the high-profile entrepreneur. Stewart is accused of securities fraud for supposedly conducting an illegal stock trade -- selling off 4,000 shares of ImClone Systems stock based on insider information. She and her stockbroker are also accused of obstructing justice by destroying evidence of the transaction.
Stewart denies the allegations. "I simply returned a call from my stockbroker," she declared in a statement following the indictment. "Based in large part on discussions with my broker about price, I authorized a sale of my remaining [ImClone] shares.... The government's attempt to criminalize these actions makes no sense to me."
Legal analysts are more candid in describing the Stewart case as an attempt to send a message. "The deterrent effect is immeasurable," notes former Securities and Exchange Commission (SEC) lawyer Christopher Bebel. "Even if the government puts a thousand hours into building this case against Martha Stewart, the ...
Source: HighBeam Research, What was Martha's Crime? (Insider Report).