Witness Says Martha Covered Up Deal
By George Anderson
A key witness for the prosecution in the securities fraud case against Martha Stewart testified she was involved in a cover-up to hide being tipped off to sell her shares of
Douglas Faneuil, the former assistant to Ms. Stewart’s stockbroker, Peter Baconovicwho, said the cover-up started with the story that the ImClone trade was being made to balance
off profits realized from other deals and was later changed to a prior agreement to sell shares if the price fell below $60.
Moderator’s Comment: Will the testimony made in court about Martha Stewart’s business
dealings damage her brand’s sales performance in the short run or longer?
The lesson for today is that greed is not good. We just keep shaking our head over why someone worth millions would risk it all over what amounts to pennies
in her overall financial picture. – George
Anderson – Moderator