Martha Stewart was convicted on all four counts (but MSNBC and CNBC reported she was not guilty. That’s NBC News for ya!). And CBS is dropping her television show. CBS has an odd way of showing it has integrity.
What people don’t get about this, and this may be good, is that she was not charged with insider-trading. But that’s what everyone thinks she did. She just got a call from her broker suggesting she sell the stock, so she did. That’s legal (and wise). Her mistake was lying about it and trying to cover it up. Her experience as a stock broker probably did her in, because she probably assumed it was illegal to know what she knew. So she’s been convicted, and rightfully so, IMO.
But more importantly, I hope this does send a message to brokers that they have to treat all of their clients the same. Did Bacanovic have Faneuil call all ImClone investors at Merrill Lynch? Or all his clients? Apparently not, he just had him call Martha. That’s the crime here against American investors, IMO.