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Sections Home Page Local News AP News Archives Business Classifieds Event Calendar Forums Life Opinion Obituaries Photo Gallery Since We Asked Sports Tempo Weather Special Coverage 2006 Britt Festivals --> Shop Our Valley AutoFinder HomeFinder JobFinder Search Our Valley Special Sections Homelife Magazine Joy Magazine Readers Choice 2006 Oregon Golf Info Oregon Wine Info Our Valley Other Publications Local Links Ashland News eSouthernOregon Newspapers In Education Personals Moving Here Movie Listings TV Listings Volunteer Customer Service Advertise With Us Media Kit Place Classified Ad Contact Us FAQ's Home Delivery Site Map --> Email Story to a Friend August 8, 2006 Martha Stewart settles charges with hefty fine By Walter Hamilton Los Angeles Times NEW YORK — Ending her legal battle with the government, Martha Stewart has agreed to settle insider-trading charges by paying $195,000 and accepting a five-year ban on serving as a director of a public company. The agreement, announced Monday, resolves the issue that was at the heart of Stewart's criminal trial but for which she was never prosecuted. Stewart, convicted in 2004 for obstructing an investigation into her sales of ImClone Systems Inc. stock, was not criminally charged with insider trading. "This case sends a strong message that the SEC will not tolerate insider trading, especially where brokers tip their clients with confidential information that company insiders are selling their stock," said Bruce Karpati, assistant director of the SEC's Manhattan office. Stewart neither admitted nor denied wrongdoing, as is common in such settlements. The agreement effectively bars Stewart from serving as chief executive of her namesake media company, Martha Stewart Living Omnimedia Inc., for the next five years. But legal experts said the terms could have been harsher — for example, she could have been slapped with a lifetime ban on serving as a corporate director. Advertisement The SEC case stemmed from Stewart's December 2001 sale of 3,928 shares of ImClone Systems, a small biotechnology company led by Stewart's friend, Samuel D. Waksal. The SEC alleged that Stewart dumped her holdings after her stockbroker, Peter Bacanovic, tipped her that the Food and Drug Administration would reject approval of an anti-cancer drug ImClone had developed. News of the FDA ruling later caused the stock to drop when it was made public. Bacanovic agreed Monday to pay a $75,000 penalty. He was also convicted on obstruction of justice in 2004 for lying to investigators scrutinizing Stewart's ImClone stock trades. In the SEC settlement, Stewart will pay the $45,673 that she would have lost had she not sold her ImClone shares. She also agreed to pay three times that amount, or $137,019, as a penalty, plus $12,389 in interest. The settlement allows both the SEC and Stewart to avoid the risks of a trial. Despite Stewart's criminal conviction, proving insider trading by an active, experienced investor such as Stewart would be difficult, legal experts have said. For Stewart, the settlement ends the prospects of a civil trial and another swirl of negative publicity. "My personal nightmare has come to an end," Stewart said in a statement. In its own statement, Stewart's company said the deal "allows Martha to continue in her role as founder and as the creative force behind the brand." Shares of the company rose 7 cents to $16.95, still far below its 52-week high of $34.74 last Aug. 30. Mail Tribune Home | Local News | Sports | Business | Obituaries | Life | Opinion AP News | Archives | Site Map | Community | Classified Copyright © 1997-2006 Mail Tribune, Inc. All rights reserved. Privacy Policy | Terms & Conditions | Website Feedback online casinos news Home Security Systems California Casinos Men's Clothing Southern Oregon Loans --> GMAT Prep Fundraisers Send Flowers Entertainment Guide --> Casinos Canada Trunks, Footlocker Online Casino Reviews Advertisements Advertisement