The trial of martha stewart

Name:
Instructor:
Course:
Date:
MARTHA STEWART’S TRIAL
Martha Stewart was a shareholder at ImClone shares. After realization through Bacanovic, a stockbroker that ImClone shares company was about to incur great loss, she decides to sell her shares too as her friend Mr. Waksal and family had done. Thus in the entire process, she is indicted with the crime of insider trading which is followed by a series of investigation by the department of Securities and Exchange Commission in conjunction with the United States Attorney’s office.
The entire evidence gathered by the investigation department indicate that Stewart committed the insider trading crime when she sold all her ImClone shares on the day of twenty seventh day of December two thousand and one. This is because even though it took the government a span of one and a half years of investigation, the outcome was satisfying because through the evidence collected in the interviews and other sources were adequate proof that Stewart was guilty. The office of Attorneys of the United States as well as Security and Exchange Commission filed indictments against Peter Bacanovic and Martha Stewart. Firstly, Stewart had committed a serious crime when she conspired with the stockbroker Bacanovic to sell off her shares after realization that the share price of ImClone would plummet due to rejection of Erbitux application by the Food and Drug Administration. Stewart’s initial mistake was complying or responding to Bacanovic’s intrusion of private information that was supposed to be confidential and refrained from the public. This is indicated in the Client’s Information Privacy Policy, which states that Merrill Lynch is should protect the security as well as confidentiality of the information belonging to a certain client. The policy further indicated that it is the employee’s duty to ensure that this client information is intact and safe. Stewart received this information from an employee and acted on it by selling all her shares, knowing that it is wrong and worsening the situation by lying to the investigation team several times. The basic line is the fact of accessing private information that was supposed to be confidential and later lying about the entire scenario. They had both invented a lie that they had greed with Bacanovic to sell the shares when they started decelerating from the price of sixty per share. The lie only indicated that Stewart knew that what she had done was wrong and thus conspired with Bacanovic to conceal the evidence that the stockbroker had offered nonpublic information regarding ImClone to her.
The department of Security and Exchange Commission and the United States Attorneys offered the best judgment in indicting Stewart. This is because their investigation was based on facts and they conducted repeated interviews to ensure that they collected adequate information about the case. Evidence pointed that Stewart was aware of the loss that awaited the ImClone shares company and thus decided to hasten the sale of her shares before the price deteriorated. In addition, the investigation department based their indictments on the policy that indicated that client’s information is private and thus should not be leake...