Netflix's deep dive documentary into the life of Martha Stewart has raised some questions that viewers want to know more about, particularly why the businesswoman spent time in jail.
Netflix documentary Martha, covers the iconic entrepreneur's life from teenage model, to America’s first self-made female billionaire. Referred to as America's 'original influencer,' the show offers intimate interviews with Martha and those closest to her, offering brand new insight into her incredible life.
Along with high-profile relationships and a breakup heartache that remains with her to this day, Martha's personal life is just as interesting as her incredible business acumen. One aspect of her life that's left viewers fascinated, is the real reason Martha Stewart spent time in prison - read on for everything you need to know.
Why did Martha Stewart go to prison?
In March 2004 following a six-week trial, Martha Stewart was found guilty of conspiracy, obstruction, and two counts of making false statements, according to NBC News.
In June 2003, the U.S. Securities and Exchange Commission had filed a complaint against Martha and her broker, Peter Bacanovic. The SEC alleged that two years previously, Martha had engaged in illegal insider trading when she sold her stocks in the biopharmaceutical company, ImClone.
The claim continued to allege that Bacanovic advised Martha to sell her shares when ImClone CEO Sam Waksal and his daughter Aliza, began proceeding to sell their own shares, and that their decision had not been made public. This was seen as a sign the Waksal's knew the company’s share price was about to drop. In selling her $228,000 shares, it's thought Martha avoided losses of $45,000.
By warning Martha about the Waksals’ sale, Today suggests Bacanovic was in violation of his employer's insider trading policies and also the Insider Trading and Securities Fraud Enforcement Act of 1988. The complaint made against Martha also alleged she lied to authorities and she and Bacanovic attempted to conceal what they'd done.
The SEC complaint also suggested Stewart tampered with a piece of evidence, altering the contents of an incriminating message regarding her possible ImClone insider trading. Both Martha and Bacanovic pleaded not guilty to the charges, and Martha didn't testify at the trial. Bacanovic was convicted of obstruction, making false statements, conspiracy and perjury, but was was found not guilty of falsifying a document.
In September 2004, Martha was sentenced to to serve five months at Alderson Federal Prison Camp in West Virginia - Bacanovic was also sentenced to five months in prison. Martha arrived to begin her sentence in October 2004 and was released in March 2005.
Per Today, Martha said of her time spent in prison, "The trial and the actual incarceration was less than two years out of an 83-year life. I considered it a vacation, to tell you the truth."
