ABSTRACT

The Martha Stewart case attracted attention for many reasons. An author, television personality, and entrepreneur who had built a large, protable company, Stewart ran afoul of the securities laws. e tragedy, as it unfolded over a long investigation and hotly contested trial, was gripping. As it turns out, her story is gripping for another reason: the light it casts on the federal crimes of securities fraud and insider trading and the government policies for enforcing those laws. Insights from the case apply generally, not only to insider trading and securities fraud, but also to other federal white collar crimes. is chapter analyzes those issues by tracing the case against Stewart from the investigation stage through sentencing. We begin by reviewing briey the statutory framework and the facts of the Stewart case.