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Martha Stewart

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CASE STUDY: MARTHA STEWART OF LIVING OMNIMEDIA
Sanjay Gokhale
Indiana Wesleyan University
July 26, 2010

UNITED STATES OF AMERICA V. MARTHA STEWART AND PETER BACANOVIC
MSLO AND TALENTED MARTHA STEWART

Martha Stewart is the founder of Martha Stewart Living Omnimedia, L.L.C. (MSLO). Since Martha is an icon known for her imagination and creativity, no wonder that it is reflected in her products. They are comparable to the top brands in the country, which shows her class. MSLO is comprised of four business units. They are Publishing, Internet, Broadcasting and Merchandising. Its headquarters is in New York and it employs approximately 760 people with annual turnover of $327.9 million dollars (Martha-Stewart-Living-Omnimedia,-Inc.).
Martha …show more content…

The indictment separately charged Stewart with securities fraud in connection with her artificial manipulation of the price of MSLO common stock” (Justice Government Press Release, 2003). The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty (Custom edition for Indiana Wesleyan University. 2007. p. 230).
The defendants filed a motion for a new trial, alleging that expert witness Lawrence F. Stewart, director of the Forensic Services Division of the United States Secret Service, had committed perjury in his testimony on behalf of the prosecution. Motion for new trial was denied by the court on the basis that defendants cannot escape the fact that the jury acquitted both defendants of making false statements relating to the existence of the $60 agreement, and the fact that ample evidence supports the charges (Custom edition for Indiana Wesleyan University. 2007. p. 42).
Stewart did not enter into a plea bargaining agreement. A plea bargain is an agreement in which the accused admits to a lesser crime than charged. In return, the government agrees to impose a lesser sentence than might have been obtained had the case gone to trial. This saves costs, avoids risks of trial, and reduces

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