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6/3 The Martha Stewart Scandal: A Tempest in a Cuisinart...
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Fans to Investigators: Indict This!
Dear Attorney General Ashcroft and US Attorney Comey,
The next thing we are expecting to hear is that Martha is a terrorist hiding biological weapons. How can Enron shove thousands into a retirement of poverty while all we hear about is a 4,000 share trade! You all should be ashamed of yourselves. If Halliburton was involved, this thing would have been ancient history. Laurie Heinz
Dear Attorney General Ashcroft and US Attorney Comey,
Lets all focus on the REAL reason our economy is in bad shape. Go after the BIG FISH who cooked the books and make them pay dear for their dishonesty. If Martha Stewart has proof she had a sell order if the stock fell below $60, the justice department has no case! Stuart Norman
Why are we spending valuable tax payer dollars on this witch hunt???? It is going to cost millions to try to prosecute an innocent woman! So please, let reason and common sense prevail... My take: If the government procedes with this case, I hope they are prepared for the backlash from the tremendous mega wave of public support for Martha will have.
Go MARTHA!!!!! C. Borbridge
Dear Attorney General Ashcroft and US Attorney Comey,
It appears you are using Martha as a scapegoat for real criminals such as Ken Lay who still owns 4 - right four (4)- luxury homes in Aspen and lives the life of Riley inspite of defrauding 10's of thousands of workers of their pensions and retirement funds. Get real! Get off Martha's back! And start going after real criminals! Linda Jeschofnig
Dear Sirs, This smacks of Whitewater. Women everywhere are watching the double-standard unfold and how Ms. Stewart is being treated, and this case is now extremely important in the precedent it sets for successful women business owners, homemakers (and the value in their job and needs), etc. I'm tired of simply finding out what each side is saying. Please, someone, do an investigative, in-depth story into this. Kim Skinner
Dear Ms. Stewart:
You are being singled out by our top echelon government officials in your "Imclon" sale of stock and, so far, I haven't figured out how you could have aggravated those big boys at the Justice Department so much that they came after you "big time"!! You don't deserve this kind of bullying and one wonders why they aren't going after their cronies at Worldcom, Enron, etc.
It's a shame that your company and the shareholders have suffered in this mess. Do you suppose that this outcome was highly anticipated by those who would wish to do you financial harm?
Stay the course for your vindication by taking this to trial, if you have to. One can only hope that the truth will come out and that we find out who is behind this so-called "witch hunt".
You go get 'em, girl!!!!!!!!!!!!!!!!
Sincerely, B. Norris
The message I get when I see the "Let's Take Martha Down" campaign, is that in our wonderful country of opportunity for all, it is still a country primarily run by men in big corporations, who have taken advantage of corporate welfare, been charged with fraud,etc., and have at some time or other taken advantage of "tips" given from the inside. Enron cost investors billions, and still haven't received just punishment for their evil actions, but Martha Stewart has been held a convicted prisoner from the very beginning. ENOUGH ALREADY!!!
Lisa A. Santos
SaveMartha in the News:
This time, Martha Stewart's cooking up debate--Reuters
Love Martha? Think she's been mistreated? Head to www.savemartha.com to tell the Internet world. Want to spread the message further? Spend a few bucks on a "Save Martha" mug, T-shirt, apron or chef's hat.
"Enron cost investors billions, and still haven't received just punishment for their evil actions, but Martha Stewart has been held a convicted prisoner from the very beginning. ENOUGH ALREADY!!!" read a posting on the site from Lisa Santos.
Martha Stewart indictment expected--Seattle PI
Maven of homemaking will deny fraud, obstruction charges
By SHELLEY EMLING, COX NEWS SERVICE
Martha Stewart's company said yesterday that federal prosecutors are seeking a criminal indictment against her "in the near future," a move that could bring prison time for a woman who made herself into the image of domestic perfection.
She's rich, blond and beautiful, and that's a recipe for disaster," said John Small, a business consultant who started the Web site www.SaveMartha.com last July. "I believe what they are accusing her of is the corporate equivalent of jaywalking, but they are treating her like she's guilty of genocide."
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Welcome to WESTPORT, CT...Now get the hell out!
 Westport has had a conflicted relationship with Martha Stewart over the years, but even they seem to think she's getting a raw deal now. Here's a selection of the best and worst Connecticut has to offer:...
WestportNow, the insiders view of everything Westport
Westport magazine , The Dirt On Martha,
Westport News: Martha's new fan
Shareholders vote to re-elect Martha to the board, tell Martha to fight charges tooth and nail!
 Martha Stewart vows to fight on--CBS.MarketWatch.com
Martha Stewart declared she's staying on to run her company and will fight an expected criminal indictment, setting the stage for a high-stakes showdown with federal authorities who are expected to charge her as soon as Wednesday. At the shareholder meeting, several investors threw their support behind the domesticity diva. Julie Sawka of Windsor, Conn., said she hopes Stewart stays with the company, but she said she'd probably sell her stock if Stewart leaves the firm. "I think she got a raw deal," said Sawka. "I would have sold [ImClone] myself."
41 page indictment contains 9 charges, Zero for insider trading...
Martha Stewart resigns as Chairman and CEO
"I am stepping aside as chairman and CEO because it is the right thing to do," Stewart said in a statement.
The double standards that led to Martha's indictment...
SEC Complaint: Martha Stewart and Peter Bacanovic
Attorney Bob Morvillo: Martha Stewart will proclaim her innocence and proceed to trial--Reuters
Is Stewart being served up?
Opinions differ on uberhomemaker
Martha Stewart on Wednesday was charged with conspiracy, obstruction of justice and securities fraud and resigned as chairman and chief executive of Martha Stewart Living Omnimedia Inc. Bloomberg News
Martha Stewart leaves a federal courthouse in New York on Wednesday. She and her former broker were indicted on criminal charges related to a 2001 stock trade.
The carefully polished image of America's style maven has clearly been tarnished by accusations that she lied to cover up an insider stock trade. But observers are divided on whether the government is serving her up on silver platter.
It's Not Too Late to Save Martha, Says Founder of SaveMartha.com--IWantMedia.com
John Small, founder of the fan site SaveMartha.com, told I Want Media that he is asking people to write Attorney General John Ashcroft to request he "drop the investigation." He is also advising supporters to head to Kmart to purchase Martha Stewart Everyday products.
Hear John Small discuss the case on WGST, Atlanta's First News with Tom Hughes at 7:20 AM...thanks to Olliver North for the opportunty to tell the other side of the story on his radio show. If there's anyone out there who knows what it's like to be in the middle of a major political investigation and scandal, it's Ollie North...
JayLenoWatch
Still no word on Osama bin Laden or Saddam Hussein, but Federal authorities are closing in on Martha Stewart!
Martha Stewart said she thinks she will be indicted tomorrow. You see, she's still getting inside information, how does she do that?
And the White House now belives that Martha Stewart has weapons of mass destruction....they are charging her with providing false information, such as saying it's easy to make dinner for eight in-laws
Tell Jay where to stuff it!
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CNBC criticizes investigators: If you don't have anything on her, then move on!
Mark, Joe and the all male crew on CNBC reacted with surprise and mild outrage at the news that the Martha Stewart will likely be charged with making false statements, despite the fact that insider trading case against her has fallen flatter than a bad soufflé! The consensus on CNBC's Squawk Box is that if there is no insider trading case after a full year of investigations, the government should move on and leave Martha alone. Instead, it appears that Martha will have to fight to the end to save her company and herself.
A last minute deal has fallen through, and now it looks like Martha Stewart will wage an all out war to save her own name and her company. This could be headed for a long court battle. Accepting a criminal charge would be damaging to her company's ability to work with advertisers, a major revenue source. CNBC commentators pointed out that US Attorney Comey is also investigating Bernie Ebbers of Worldcom, which is the largest corporate fraud in history, but that all they could come up with on Martha was the sale of a lousy 4000 shares, and they don't seem to be able to even prove insider trading. Joe Kernan speculated that politics may be involved in the case. "You would think the investigators would know how this looks. Is Comey running for something? Naaah!"
Press Release from Martha Stewart Living Omnimedia, Inc.
Martha Stewart Living Omnimedia, Inc. Issues Statement
Tuesday June 3, 8:03 am ET
NEW YORK, June 3 /PRNewswire-FirstCall/ -- Martha Stewart Living Omnimedia, Inc. has been informed by Martha Stewart's attorneys that the United States Attorney's Office for the Southern District of New York has informed them that Ms. Stewart is a target of a criminal investigation and that the United States Attorney's Office intends to request the grand jury to return an indictment against her in the near future. Additionally, MSO has been informed that a civil complaint by the Securities and Exchange Commission is also expected.
MSO and its board of directors have been planning for a number of possible contingencies, are evaluating the current situation and will take action as appropriate.
Readers outraged at unfair treatment of Martha Stewart:
What You can do to help Save Martha:
Martha's Final Appeal to Justice Dept. Denied
Settlement may come this week
 According to the Financial Times, after months of secret negotiations, Martha Stewart's final appeal to senior Justice Department officials has fallen through. and a final settlement may come as soon as this week. Martha' Stewart's attorney Robert Morvillo had been reportedly trying to go over the head of US investigator James Comey, but since Comey was following marching orders from superiors in Washington DC, this was obviously a last ditch effort, perhaps designed to buy the defense some more time. But time for what?
If obstruction of justice charges are pursued, that could mean Martha would face jail time, or perhaps be forced to step down from her company as CEO. The irony is that it appears that the insider trading charges are less likely now, and ImClones drug Erbitux actually appears to work. In a triple-whammy of sailing through the perfect financial storm, Martha may be the victim of bad advice, worse timing and an unfairly public prosecution.
The immediate issue is whether any settlment or action will have an effect on Martha's role with the company. Given the very public manhandling Martha has already endured, we hope that this matter is finally worked out in a way that will not further damage her company, employees or shareholders.
Martha Stewart fails in appeal to Washington--Financial Times
The terms of the proposed settlement have not been made public. But the government has been veering away from insider trading charges to the lesser offense of obstructing an investigation, according to people familiar with negotiations. That would still have serious consequences: federal sentencing guidelines mean that Ms Stewart could face prison time. A criminal plea would also prevent her from serving as an officer of her publicly-held company, Martha Stewart Living Omnimedia. (Editor's Note: obstruction of justice is not a lesser offense as it is a criminal matter, while insider trading is often treated as a civil matter.)
ImClone soars, up over 100% in past 2 weeks
 Is yet another stock scandal cooking?
Doctors revealed on Sunday that tests show ImClones Drug Erbitux drug improves survival rates by 50% in colorectal cancer patients. Interestingly, this information was released on Friday, by Doctors who reportedly were not supposed to disclose these test results before the weekend conference in Chicago. ImClone shot up 22% on the Friday news, and was up 25% again on Monday.
Did somebody else know about this information before it was leaked? ImClone shares climbed steadily throughout last week, rising from under $17 on May 21 to over $28 just nine days later. This is the same situation as the Martha Stewart ImClone trade, only this time the stock is headed up. For the second time, information about the drug has leaked out before any official announcement, and investors are responding logically. So how is this any different from Dec. 27, 2001, when information leaked out that Erbitux did not pass the test, leading to a massive sell-off in ImClone? Answer: the only difference is that nobody seems to complain when the stock price goes up...
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Reality Checklist
 Here's an excerpt from John Small's upcoming book, Saving Martha: Lessons from a PR Nightmare, The Martha Stewart Scandal
While we have railed against the unfairly delayed and needlessly public investigation of Martha Stewart's ImClone stock trade since the scandal became public in June of 2002, reality has forced us to look at Martha's situation and realize that all is not well in Stewartville. There is still a good chance that Martha Stewart will not be charged with insider trading. That's a good thing. But the reality is that she may be charged with something, or perhaps forced to make a bargain with the feds that would be costly to her firm and shareholders. Even if this can be avoided and the investigations are all dropped, the public perception of Martha, which was polarized before, is even more damaged now. This is not Martha's fault, but it is reality. And like dirty laundry, at some point it must be dealt with. Steps must be taken to salvage and rebuild what Martha Stewart has created. Here's our reality checklist to help get the process started:
Go On SNL
Martha should host Saturday Night live and poke a bit of fun at herself. Self-deprecation is the best medicine for a PR disaster that will rate up there somewhere between Tylenol (which worked out) and the Titanic (which didn't). And nobody will ask any questions about the case on SNL, unless Katie Couric shows up unexpectedly.
Step Up, Gracefully
Martha should remain as Chairman of MSO, but find a new CEO to lead the company into the future. Now don't get upset, we know this sounds extreme, but unless Martha plans to work until she's 105, this will have to happen in the near future anyway. And if the investigation moves forward to more serious charges, this and worse could be forced on Martha and her company. It is better to take control of the situation now than to wait. Sharon Patrick, President and COO, would be a good candidate for the job.
Understand your Enemies
Martha needs to understand that the unfair truth is there is a double standard for famous female billionaires. Unless your name is Oprah, being rich, famous and female is a recipe for disaster. Other examples of this rule: Hillary, Britney, Lizzie and Leona, to name a few. Men are unfair, and so are many women. They are jealous. So is the media. Don't pretend it does not matter; this case proves again it matters very much. If your brand depends on keeping your name and personality intact , as it does, then you must understand the enemy to conquer them. Ignoring their misplaced sentiments didn't work very well last time, and this issue needs to be dealt with in the future.
 Write the Book
Take control of your life story. It's time for Martha to write her own autobiography. Chris Byron did not do a very good job with his book Martha Inc., and that turned into the #1 TV movie of the year. Since he has written Martha's life story, it is now the primary one people know and believe. There is no other reference point to say whether all those stories are true or not. Martha's Memoirs would correct those misperceptions, and be an instant bestseller.
Go back to basics
Get back to the grassroots. Do a few focus groups, and reach out to community organizations like Habitat for Humanity. Redecorate a house in Harlem. Let people see how Martha's skills work in the real world. Letting people see Martha as a real person is as important to the brand as the perfect persona carefully crafted on the TV show. Like id and superego, one cannot live without the other.
Do The Interview
After the matter is settled, tell your story. Barbara Walters has already stood up in Martha's defense, and she would be the best choice to reach the largest audience. It will be time to tell all, and to be a little vulnerable and self-reflective. Don't play the victim, but show how much this scandal and media coverage have hurt. Martha told The New Yorker she has never been not nice to anyone. That's silly, we all have. Apologize to anyone you may have ever offended. America loves a good comeback, and by finally opening up Martha will become the next American folk-hero.
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Martha sightings: Martha Stewart checked out "Bruce Almighty" at the East Hampton, L.I., cinema. (NY Daily News). Good choice. It had to be better than Cybills new movie...
Cybill Dearest...
Some big names in the media are rallying to Martha's defense...
Barbara Walters Stands up for Martha Stewart--Knight Ridder
Perhaps hoping to land the first post-scandal interview with Martha Stewart, Barbara Walters defended the domestic diva Monday on "The View." During an interview with Cybill Shepherd, who played Stewart in the "Martha, Inc." TV movie Monday, Walters said Stewart was "fair and decent." She said Shepherd's performance was a "tough, mean portrayal, maybe it sells tickets and you are great, but this is an unbalanced portrayal."
Liz Smith Says Save Martha!
Most people are either born with good taste or they are not. NY Post columnist Liz Smith definitely has the right genes: she did not care much for Cybill Shepherd's portrayal of Martha in the TV movie either:
"WELL, I guess Cybill Shepherd and I have a different idea of what a "sympathetic" portrayal of a living person is. I thought Cybill's Martha Stewart was as close to the Beast of Belsen as one could possibly get! Even Joan Crawford got a better deal in "Mommie Dearest."
I'm still waiting to see the bodies of innocent children that Martha killed to justify the incredible bashing she has received. Until the Enron men are jailed, spare me any more attacks on Martha! " (Liz Smith)
...but some late nite funnymen still don't get it:
"Tonight NBC had a new TV Movie about Martha Stewart, who is also known as the Eight of Clubs!" David Letterman
"Some people are comparing the CBS Hitler TV movie with the NBC movie about Martha Stewart. Now that's not fair. One only dreamed of world domination, the other one actually achieved it! Jay Leno
Tell Dave and Jay to leave Martha alone!
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| Insider Tip of the Day: Be very nice to people on the way up, because you will surely meet them again on your way back down...
A few months ago, readers reacted with outrage after the head of marketing at Chrysler made a few ill advised comments about Martha Stewart after Chrysler unceremoniously pulled the plug on her spokesperson deal. Just four months later, Chrysler's marketing guru is making his own hasty exit out the door as Chrysler sales continues to slump. Evidently, this guru also didn't like cash rebates and zero-interest deals to move all those minivans off the lot. Chrysler's marketing strategy basically said "forget Martha and the rebates, check out Celine!"
Keep Celine, show me the rebates...
The problem is that auto buyers and dealers like rebates and zero-interest loans a lot more than they like Celine Dion commercials. So do assembly lines: the auto industry has excess capacity, and unions demand that the lines keep rolling. Rebates make that happen; evidently Celine does not. And if Chrysler really wanted family-friendly, they already had that in Martha Stewart. As Jim Burt at TheCarConnection.com points out, Celine's "Las Vegas persona seems to be in direct conflict with the strategy of positioning Chrysler as a more sophisticated brand for discerning car buyers." The proof is in the pudding: a dollar invested in Chrysler stock four years ago would now be worth 32 cents. That almost makes Enron look like a good investment. Meanwhile, GM has stepped in to sponsor Martha's new Food magazine. If all else fails, maybe Chrysler can give away it's cars over the slot machines at the Bellagio. Here's a little recap of Chrysler's marketing genius, then and now... |
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That was Then...
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And this is Now...
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January 7, 2003
CHRYSLER SLAMS DOOR
ON MARTHA DEAL--Page Six
 Martha Stewart's been dumped for a younger, thinner - and more family-focused - woman.
Automaker Chrysler will not extend its wide-ranging advertising partnership with Martha Stewart Living Omnimedia, and will exit the relationship "as fast as possible," Chrysler Executive Vice President Jim Schroer told Bloomberg News.
The Martha Stewart ads were "not consistent with where we wanted to take the Chrysler brand," Schroer said. "That would fall into the ‘oops, screwed up' category, and we exited out of it as soon as we could," he added.
Instead, the company has signed Canadian songstress Celine Dion to represent the brand to the public in a family way.
Editors Note: Soon after this announcement, documents revealed that Celine Dion and her husband/ Rene Angelil had paid $2 million in "hush money" to a woman who claimed that Angelil once fondled her in the elevator of a Las Vegas hotel. This is "family friendly?" |
May 30,2003
Top Marketer Quits Chrysler as Car Sales Remain Weak--NY Times
 The Chrysler Group said today that its marketing chief, James C. Schroer, was resigning, effective immediately.
The move comes amid slumping sales for the company, a unit of DaimlerChrysler.
Under Mr. Schroer, Chrysler hatched unusual and sometimes risky campaigns. Ads last year tried to reintroduce DaimlerChrysler as a company that was both American and German.
And he tried to make Chrysler classy, scrapping an alliance with Martha Stewart when her reputation clouded, to focus this year on Céline Dion...
Edito's note: This just proves the old axiom "You can't buy class." We wonder if this would fall into the "oops screwed up" category as well? |
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