Martha Stewart and the Imclone Scandal

The Enron and WorldCom scandals were arguably the incidents that permanently changed the procedures for accounting controls. In response to these incidents, the Sarbanes-Oxley Act (SOX) of 2002 was passed. Once the knowledge of these scandals was made public, a number of subsequent accounting scandals were discovered in public companies such as Tyco International, HealthSouth, and American Insurance Group. In addition, a then-employee-owned company, Post, Buckley, Schuh & Jernigan, Inc. (dba PBS&J, now known as “Atkins North America, Inc.”), was also hit by a similar accounting scandal. Henceforth, a case study of PBS&J is presented where we will examine the fraudulent transactions that

Fraud, lying, conspiracy...not terms that any individual generally wants associated with their history, nonetheless with their reputation and personality, especially if that individual happens to be Martha Stewart. Martha Stewart: a name which almost every person who calls themselves an American can recognize. Her name pronounces itself across cookbooks, magazines and even has its own show on Style and The Learning Channel. It now pronounces itself with yet another captivating theme, as part of one of America's major scandals.

When I say white collar crime a few ideas usually will fill the average persons head. Many will immediately think of Bernie Madoff. This scumbag ran a ponzie scheme spanning multiple decades and made over 60 billion dollars in the process. He was eventually caught and thankfully is spending the rest of his natural born life in prison. Someone might also think of Martha Stewart. Martha, to the surprise of her fans, was much more than that loveable women on the home shopping network or the cooking channel. Martha was caught committing an act called insider trading. According to (The U.S. Securities and Exchange Commission), insider trading is when an individual has knowledge not known to the public about what is going to occur within a company

Martha Stewart’s defense attorney was a man named Robert Morvillo, a man who had represented high profile clients such as Merrill Lynch and Amerada Hess. He has been described as “one of the city’s savviest white-collar criminal-defense attorneys for more than three decades” (Smith, “Can This Man Save Martha?”). One of Morvillo’s biggest rebuttals in the Stewart case was bringing up the fact that if Stewart were really as smart and business savvy as the prosecutor will try to make her seem by bringing up her years as a stockbroker, which should have made her realize that the sales of her stock were illegal, then why would she risk her entire company and image over a sale that would have provided her with a miniscule amount of money in comparison to what she already makes (Smith)?

She took an opportunity when she received word that the company, ImClone was about to crash to remove 4,000 shares where she would avoid losing about 46k dollars. Investigation into the case and begun and developments in the case had started surfacing on the truths in the case. On December 27th, Martha Stewart told investigators that she was traveling on a trip when she called to check her messages and her broker had stated that the company had fallen under $60 per share so he sold them. According to the literature, Martha Stewart claims that she had set up a “stop-loss” order, which states if the shares fell below $60/share that they would be sold. Unfortunely, this was not the case when the broker’s assistant came forward and told Merrill Lynch that his boss had told him to lie about the “stop-loss” order. He started cooperating with federal investigators and later was fined and fired from the company along with his boss for the involvement they had in the scandal. On the other hand, after everything started falling apart, Martha Stewart later resigned from her board at the New York Stock Exchange. Later in August, investigators begin building their case against Martha Stewart in her involvement with inside trading and lying about the “stop-loss” order. Investigators reached out to Stewart’s lawyers but later made a statement that Martha Stewart would be pleading the Fifth Amendment and keeping quit about anything to do with the case. As a result, the SEC filed charges against Martha Stewart, and she was found guilty on four counts of obstructing justice and lying to federal investigators. On June 17, 2004, Martha Stewart was sentenced to five months in prison and two years of supervised release along with a healthy fine attached. Till this day, Martha Stewart pleads her innocence and states that she did not do anything wrong. She is currently making a comeback with her company and

She was found guilty of insider trading in 2003 and was convicted and sent to jail. She sold her shares of biopharmaceutical company ImClone Systems from a top that she got from Peter Bacanovic, a stock broker that worked at Merrill Lynch. He got the tip from chief officer Samuel Waksal, after he sold all of his shares in the company. This company was one that was working an a cancer treatment and was waiting for the FDA to get back to them to see if they would approve of their drug. Which they did not, causing the stock to drop 16% in one day. Since stewart sold her shares early, she was able to save around $45,673 bucks because of the information that wasn’t made public! She ended up doing a five month sentence with probation and house arrest. While Waksal, the CEO of the company, did seven

Michael A. Cohen’s prolific op-ed on the disaster that is the new Trump administration addresses the incoherency of their wide ranging statements with regard to an array of developing scandals. This article was published on February 10th, 2017, just days after the evolving scandal surrounding Michael Flynn’s discussion of sanctions with Russia and Kellyanne Conway’s free advertisement for Ivanka Trump’s clothing line fueled controversy. Cohen ends his first paragraph with his claim that these scandals are not only a threat to the security of the president’s job, but the safety of the nation.

Jordan Belfort was a very dishonest man. He was the CEO of a very dishonest investment company. The company’s name is the “Stratton Oakmont” He and his partner Danny Porush made up stories and told the investors just so they would invest in that product. He made millions just by lying to get people to invest in that product. There company lived by a motto and that was "Don't hang up until the customer buys or dies." Jordan lied and when the Investors call to talk to the people in the company he lied and told them they work they said they were on wall street when their company was actually in Lake Success, Long Island. About an hour away for there.

executives were accused of overstating revenue from software licenses in collusion with executives from PurchasePro Inc.AOL sold the software licenses for PurchasePro. The parties were accused of deceptive accounting practices that resulted in investors believing that the sales projections of PurchasePro had been met when they had not and the result was that the stock prices of PurchasePro were inflated and overstated by 37% in the first quarter of 2001. Out of court settlements were reached by AOL and executives including a $210 million fine in order to avoid being criminally and civilly prosecuted. The defendants in this case who did not accept plea agreements were found to be 'not guilty' and this is stated to be due to the lack of documentation of what had occurred on AOL's networking and computer systems.

Mr. Elgindy and his partner, Derrick W. Cleveland, sold short the shares of companies that they learned were under investigation, according to the indictment. (Short sellers borrow shares and sell them, hoping to get them back later at a lower price and pocket the dispute.) Then Mr. Elgindy promoted the negative information on two Web sites he ran, hoping that the companies stocks would fall, prosecutors

The case is about Martha Stewart, the queen of home improvement in the US. The case highlights the emergence of Martha Stewart as an entrepreneur and the establishment of her company in the late 1990s. The case also outlines the decline of the ‘Martha Stewart’ brand and the subsequent fall in revenues of her company, Martha Stewart Living Omnimedia after she was indicted in the Imclone stock scandal. After serving the sentence in 2005, Martha made a comeback with TV shows, a self-authored book, and a radio show among several others of her comeback plans. But it is felt that the comeback is not making an effect on the company’s revenues. The case tries to analyze answers for two main issues- Will the elaborate comeback strategy of Martha

4. 2001 sale of ImClone Systems stock - In light of this situation, and the intensive media exposure surrounding the case, do you believe that the Martha Stewart brand has been diluted? What evidence can you find in support?

As the turn of the 21st Century evolved, it appeared as if Adelphia Communications Corporation was on a direct path of success; unbeknownst to their investors and the public, they were in reality on a direct path of destruction instead. Unfortunately, Adelphia is not the first major company in the history of the United States’ business world to lose the trust of the American public, but it is certainly one of the most notable ones to do so. As the events surrounding the Adelphia scandal unfolded in full view of the public eye, a multitude of media outlets were there to broadcast the destruction and distrust to the masses leaving many wondering if the term “business ethics” was actually nothing more than just an oxymoron. Throughout this

On March 19 of the year 2003, Securities and Exchange Commission brought the trading of HealthSouth to an end on the New York stock exchange, charging the company for inflating its earnings by more than 10 percent and overstated its profits by more than $2.5 billion between 1999 and 2002. HealthSouth’s trading reached to $30.81 in the year 1998, but ever since the trading of the company has been put to an end it reached to $3.91 per share. One week later, Owens pleaded guilty to changing and editing the company’s financial statements.

In 1952, John Rigas purchased his own cable company. By the late 1990's, he had turned it into the sixth largest cable company in the United States with 5.6 million customers. The business was always run as a family style business which led to fraudulent acts among family members and upper level executives. The family has been accused of stealing $3.1 billion from Adelphia and is now facing criminal charges. Adelphia was forced to file chapter 11 bankruptcy and as of April 24, 2004, the new board of directors made the decision to break up the company and sell it. The Adelphia scandal is morally wrong because the Rigas family coerced and exploited employees, harmed all stakeholders as well as stockholders, and