Who thinks Martha should get busted for insider trading?

[DivePartner1]

Do you think Martha Stewart should get off, or not?

I polled 4 corporate lawyers over dinner (talk about a boring dinner) who were following the case. They split 50/50. Half thought the jury will see this is retribution for her failure to cop to the claim that was never brought and will aquit. The other half expect acquittal, not so much on the merits but on jury optics: (i) she's rich and infamous; (ii) it's open season on corporate management; (iii) she didn't take the stand. Jury's like to hear defendants and often disregard instructions not use the right to silence against defendants.

As to Switzer, every case is unique and lives or dies on its own facts, the skill of counsel (sadly) and the judgement or prejudice of the judge and jury. It does show the SEC is pursuing such cases--even those that judges say don't pass the laugh test.

On a more useful expenditure of resources, I see they indicted the lead swine in the WorldCom case today after the CFO copped a plea.

 

[salimbag]

Ken Lay is still out there walking around. George Bush's Harken Energy records are sealed. Misogynist Bush administration needs to look tough on corporate crime so they choose a successful woman. Is she guilty? Who cares? She's a bit player.

 

[crispos]

Well, I can't believe it, but they convicted Martha on all counts. I imagine the sentence will be light, and she will spend her time in "Club Fed". But wow, what a shocker. They say the $40,000 loss she was trying to save with the illegal trade resulted in $700 million market capital loss for her in MSO stock. Now that was an irrational move. Just like in diving, it is wise to stop, breathe, think, before you trade.

 

[GDI]

Apparently she did get it?

 

[crispos]

Yeah, she got it. But I don't want to start a gloat fest. She suffered big losses in all ways for small money. It is a sign of the times.