SaveMartha Timeline

(Special thanks to Andrew Ritchie for his research)

2001


Dec. 27, 2001: Martha and her friend Mariana Pasternak are flying in Martha’s private jet to San Jose del Cabo, Mexico. The plane lands in San Antonio, Texas, to refuel when Martha takes the opportunity to make a few phone calls.

Dec. 27, 2001: At 1:41 p.m. Martha returns a call from her broker’s office at Merrill Lynch and authorizes the sale of nearly 4,000 shares of biotech drug maker ImClone Systems Inc. Two minutes later, at 1:43 p.m., assistant broker Douglas Faneuil executes the sale.


Dec. 28: The Food and Drug Administration says it will not review ImClone's application for Erbitux, which the company touts as a promising cancer drug. Disappointing news sends ImClone's shares plummeting. Martha’s stock sale was worth $228,000, saving her a loss of $45, 673.

2002

January: Martha's broker Peter Bacanovic and assistant broker Douglas Faneuil are questioned by investigators probing inside trading in ImClone shares.

April, 2002: Christopher Byron’s unauthorized and unflattering biography of Martha called "Martha Inc. – The Incredible Story of Martha Stewart Living Omnimedia Inc." is released to mixed reviews. The book, which portrays Martha as a devious and ill-tempered woman, soon becomes a bestseller. Martha later announces she will indefinitely postpone the release of her autobiography, "Martha – Really and Truly," which had been scheduled for release in the fall of 2002.


June 6: "Sources close to a congressional investigation" leak rumors that the House Energy and Commerce Committee, which is investigating ImClone trading, will probe Martha's stock sale. The Associated Press picks up on the story.

June 7: The New York Times runs a front page story about the new investigation into Martha’s stock trade and stock in Martha Stewart Living Omnimedia drops sharply.


June 12: Sam Waksal is arrested, accused of advising family members to sell their shares before the FDA announcement and of trying to dump his own shares. Martha denies receiving "improper information" before selling shares.

June 25: In the infamous cabbage chopping interview, Martha appears on the CBS Early Show and tells Jane Clayson she will be "exonerated from this ridiculousness" while chopping a head of cabbage. A media feeding frenzy follows.

July 8: Native New Yorker John Small launches SaveMartha.com in response to the inordinate amount of negative press about Martha and her case. The fan site has since logged nearly 15 million hits and has content contributors from all over North America.

July 15: Martha indefinitely halts her weekly appearances on CBS "The Early Show" to avoid consistent media scrutiny about the investigation.

July 24: Martha Stewart Living Omnimedia Inc. halves its third-quarter earnings forecast, acknowledging Martha's legal problems are taking a toll on business.

Aug. 3: Martha celebrates her 61rst birthday at Skylands, her home on Mount Desert Island, Maine. . Fans sign an online birthday card for Martha, bake cakes and give them to a friend in the first annual Cakes Across America event sponsored by SaveMartha.com

Aug. 7: Sam Waksal is indicted on charges of securities fraud.

Aug. 8: Stock in MSO reaches its all-time low with shares worth only $6.29, down nearly 60% since June.

Aug. 14: InClone Systems Inc. sues Sam Waksal to recover the $7 million in severance that was paid to him when he resigned as CEO of the company in the fall of 2001.

Aug. 20: Martha delivers 1,050 pages worth of documents related to the case to the House Energy and Commerce Committee, one hour before her 4:00 deadline.

Aug. 23: A New York law firm files a class action law suit against Martha Stewart and the directors of her company, claiming they sold US$79 million worth of shares before news of an insider-trading investigation caused the company's stock price to tumble. The lawsuit seeks to represent anyone who bought stock in Ms Stewart's company, Martha Stewart Living Omnimedia, between January 8 and July 24.

Sept. 10: The House Committee asks the Justice Department to begin a criminal investigation into whether Stewart knowingly lied to lawmakers. Her stock broker, Peter Bacanovic of Merrill Lynch, is also implicated in the investigation.

Oct. 2: Douglas Faneuil, assistant to Martha's stockbroker, pleads guilty to taking a payoff to keep quiet about an alleged insider stock trade and agrees to testify against Martha. His statements are later proven to be false.

Oct. 3: Martha voluntarily resigns from the board of the New York Stock Exchange. "I did not want the media attention currently surrounding me to distract from the important work of the NYSE and thus felt it was appropriate to resign," Martha said in a statement. NYSE Chairman and CEO, Dick Grasso, responded, "We are saddened to lose Martha Stewart…Our board will miss Ms. Stewart’s counsel and insight."

Oct. 15: Sam Waksal pleads guilty to six counts including securities fraud, bank fraud conspiracy to obstruct justice, perjury. Admits to tipping his daughter to dump ImClone stock, but does not implicate Martha.

Oct. 22: Martha is served a Wells Notice by the SEC, recommending that civil fraud charges be brought against her for alleged insider trading.

Oct. 31: Martha Stewart's media company reports a 42 percent drop in third-quarter profits with declining ad sales in the company’s flagship magazine, Martha Stewart Living.

2003


March 4, 2003: Martha's company reports its first-ever quarterly loss amid fallout from the investigation.

April 30: Her company reports second consecutive quarterly loss, which is blamed on the continued insider-trading investigation, and forecasts more losses.

May: A civil court allows the class action law suit against Martha Stewart and her company to proceed. A trial date is set for November 24.

May 18: Cybill Shepherd stars as Martha Stewart in the NBC film adaptation of Byron’s book "Martha Inc." The film, which portrays Martha as a shrewd and manipulative woman, becomes the #1 TV movie of 2003 to date. It re-airs two weeks later.

June 3: Omnimedia says federal prosecutors are seeking a criminal indictment against Martha "in the near future."

June 4: The U.S. Federal Government lays criminal charges against Martha and her stock broker, Peter Bacanovic. There are nine charges between them. Martha’s charges include making false statements, securities fraud, obstruction of justice and perjury. Peter’s charges include perjury and obstruction. Ironically, the indictment includes no criminal charge of insider trading. If she is found guilty on all charges, Martha faces a maximum sentence of 30 years in prison and a $2 million fine.


June 4: U.S. Attorney James B. Comey holds a press conference telling reporters, "This case is about lying."

June 4: The SEC files civil charges against Martha and Peter, seeking an order requiring the duo to disgorge the losses she avoided through her allegedly unlawful trading, plus civil monetary charges.

June 4: Martha voluntarily resigns as Chairman and CEO of Martha Stewart Living Omnimedia Inc. "I love this company, its people and everything it stands for. I am stepping aside as Chairman and CEO because it is the right thing to do," Martha says in a statement. Company president Sharon Patrick steps in as acting CEO and company shareholder Jeffrey Ubben, an investment banker, is the acting Chairman. Martha is named Chief Creative Director of the company.

June 4: Since June of 2002, when the investigation was first made public, stock in MSO dropped from $19.23 a share to a little over $9 a share, a decline of 51% over a one-year period. Martha, in turn, loses nearly half her net worth, approximately $400 million, according to Martha.

June 5: At a cost of $79,000, Martha takes out a full-page ad in USA Today proclaiming her innocence: "After more than a year, the government has decided to bring charges against me for matters that are personal and entirely unrelated to the business of Martha Stewart Living Omnimedia. I want you all to know that I am innocent – and that I will fight to clear my name."

June 5: Martha launches
MarthaTalks.com, a website that espouses her innocence with letters written by Martha, messages from her attorneys, supportive notes from readers and articles by various media that defend her case. In two weeks the site registers 10 million hits with 55,000 letters of encouragement for Martha.

June 10: Sam Waksal is sentenced to 7 years in a federal prison and must pay $4 million in fines and back taxes.

June 19: After a brief hearing, and a court appearance by Martha and Peter, January 12, 2004, is set as the trial date for Martha’s and Peter’s case.

July 5: U.S. Attorney James Comey hires Karen Patton Seymour as the lead prosecutor in the case against Martha and Peter.

July 7: Martha hires PR guru Howard Rubenstein to help enhance her seriously tarnished image. Rubenstein's former clients have included Michael Jackson, Donald Trump, Leona Helmsley and George Steinbrenner.

July 23: Sam Waksal scheduled to go to prison for 7 years.

November 18: Oral arguments in government's criminal trial begin

November 24: Trial date for shareholder lawsuit against Martha Stewart and MSO senior management

2004

January 12, 2004: The trial of Martha Stewart begins...


©2003 SaveMartha.com
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