LABJ Forum: The Martha Stewart Matter
The doyenne of d & #233;cor, Martha Stewart, is at the center of a media and prosecutorial firestorm after revelations that she sold shares of ImClone Systems Inc. right before the company announced one of its drugs would not be approved by the Food & Drug Administration. Stewart has denied any wrongdoing, and her stockbroker has handed over documents to Congressional investigators that defend the transactions. Still, she cancelled her regular guest appearances on CBS’ “The Early Show” and hired a crisis public relations firm. Given the brouhaha, the Business Journal asks:
Do you believe her?
D. Eric Martin
Executive Chef
Maggiano’s Little Italy
Yes. I think that she had other people handling her money who are making decisions for her. She did not go out on a limb. She had too much to lose to take the risk of insider trading.
Browne Greene
Attorney
Greene Broillet Panish & Wheeler LLP
No, I do not believe her. It’s a further example of corporate greed and deviousness that basically acts to take away the confidence of the investing public. There’s a famous illustration in law school that distinguishes between circumstantial and direct evidence. Direct evidence is if you or I witness an accident. With circumstantial evidence, a mother leaves a cherry pie on the table and tells Johnny, age 4, not to eat the pie and leaves the room. When she comes back, there is a wedge of pie missing and there’s cherry juice around Johnny’s mouth. That’s what you’ve got with Martha Stewart.
Wendy Moodie
President
Production & Special Events Services Inc.
I have no particular feeling about her integrity either way. I’ve read about the reported discrepancies between her broker and herself. It seems to me it’s “he said, she said” right now.
Sue Potter
President
Saxony Street Inc.
It doesn’t look good to me. Insider trading goes on anyway, and she just got caught. There have always been problems with insider information, but it’s usually men. She’s a great target. She’s not a well-liked woman, which makes her an even better target.
Martin Pichinson
Chief executive
Sherwood Partners Inc.
No, I do not, because it’s obvious through the facts with the SEC that she did something wrong. She may not have known it was wrong, but it was definitely wrong. The facts around her story aren’t giving any validation to her story, either.
Carol Moran
President
A-1 Hospital Supply Inc.
No, because any stockbroker would know that what she did was totally illegal. If you have someone on a plane give you information, and you call the broker right afterward, you knew what you were doing. I’m sorry, but no.