Martha Stewart Resolves Stock Sales Case

09 August 2006

US domestic goddess Martha Stewart has ended her "personal nightmare" with financial regulators by settling the civil case brought against her with a payment of $195,000 (€151k; £102k).

Her deal with the Securities and Exchange Commission in settlement of insider-trading charges, also bans the founder of Martha Stewart Living Omnimedia from involvement for five years in corporate activities such as financial reporting and auditing.

The sanctions, however, will not impede her considerable creative input at the company.

The media maven's five year legal saga began in December 2001 when she sold around 4,000 shares of ImClone stock after allegedly obtaining inside information.

She was convicted of obstructing justice and sentenced in March 2004 to five months in prison and five months of home confinement. She has always maintained her innocence.

A spokeswoman for the company said: "The settlement allows Martha to continue in her role as founder and as the creative force behind the brand."

Data sourced from Wall Street Journal Online; additional content by WARC staff