Martha Imclone Made One's Insider Trading Announcement Stock

In 2001, an "experimental drug" (a medicine that is being tested) produced by a company called ImClone was not approved by the "Food and Drug Administration" (FDA, the U.S. government agency responsible for keeping foods and medicines safe). When that happened, but before the announcement was "made public" (shared with all people), the company's founder, Samuel Waksal, shared the information with some family members and friends, telling them to sell their ImClone stock before the announcement was made public. One of the people he told was Martha Stewart, a "celebrity" (famous person) who is best known for her "tips" (suggestions; ideas) for "housekeeping" (taking care of a home and making it feel comfortable) and "entertaining" (having friends over for visits).

After speaking with Samuel, Martha sold about $230,000 of ImClone stock one day before the FDA made its announcement. The SEC began an investigation and Martha "denied" (said she did not do) any "wrongdoing" (wrong or illegal actions). But in 2004, she was "sentenced" (told what one's punishment would be) to five months in prison and five months of in-home "confinement" (not being allowed to leave one's home). Throughout the period and "to this day" (up to the present time), Martha has "maintained her innocence" (continued to argue that she is not guilty).

Some people had "speculated" (thought something to be true) that the "prison term" (time spent in jail) would ruin Martha's career, but she has since made a "comeback" (a return to one's previous status or level) and her businesses are doing well.