Martha Stewart is one of the biggest names in homemaking and cooking, but this scandal almost lost her everything. She has written numerous cookbooks, twenty-five of which are currently for sale on her website. Older cookbooks of Stewart's are a hot commodity for those who spend their time in the kitchen. Her recipes are classic, but at the height of her career in 2001, she almost lost her credibility and fame.
In 2001, Stewart was accused of insider trading. She had abruptly sold roughly 4,000 shares of stock, and the next day the stock fell rapidly in value. The cooking legend was accused of using insider information in order to sell the shares before the stock lost its value. The result of the accusation had Martha Stewart serving prison time, and fans were worried she would not make a comeback in the industry.
Martha Stewart Was Accused Of Insider Trading
Martha Stewart is one of the most famous homemaking and cooking stars on the planet. She first appeared on television in 1993, and her fame only grew from there. She became a billionare in 1999 when her company Martha Stewart Living Omnimedia when public, but her net worth is much lower now.
In 2001, at the height of her career, Stewart became involved with a very serious scandal. She had sold roughly 4,000 shares of ImClone Systems stock. The very next day the stock drastically dropped in value.
Stewart was accused of insider trading, which is when someone uses information about a company or the stock market to profit by selling shares. The cooking star had received information about the ImClone Systems stock from her Merrill Lynch broker Peter Bacanovic.
During the federal investigation and public fallout, Stewart continued to appear on television and run her business. In an interview on CBS's The Early Show with Jane Clayson, Stewart was blindsided by the questions.
Clayson attempted to interview Stewart about the insider trading incident, but Stewart refused to answer any questions. She had the iconic response: "I want to focus on my salad."
Stewart was eventually indicted on nine counts, including obstruction of justice and securities fraud.
Did Martha Stewart Go To Jail?
Martha Stewart went to trial over the insider trading indictment in March 2004. The trial lasted six weeks, and the jury ultimately found Stewart guilty of felony charges. Her ruling also found her guilty of lying, obstruction of proceedings, and conspiracy to obstruct.
Stewart received her sentence in July of that year. The cooking expert was sentenced to five months in federal prison, followed by two years of a supervised release. Five months during that two years time would include an electronic monitoring system.
As if time in prison was not enough for the celebrity, Stewart was also fined $30,000 for committing insider trading.
Stewart hoped to serve her prison sentence in Florida. She wanted to be close to her elderly mother who could not travel. Her request was denied and she was forced to serve her prison time in Federal Prison Camp in Alderson, West Virginia.
Stewart went to prison on October 8th, 2004. While in prison, Stewart adopted the prison nickname of "M. Diddy" according to a CBS News report released in the summer of 2005 about her time in prison.
The cooking expert was not released from prison until March 4th, 2005.
What Has Martha Stewart Said About Her Time In Prison?
Unsurprisingly, Martha Stewart does not look back on her short stint in prison with fond memories. She found the entire experience completely horrific, and she said as much in an interview with Katie Couric on the Today show. The interview happened in 2017, as Stewart needed time after her stay in prison before she was ready to talk about it.
Martha Stewart called her time in prison a "horrifying experience."
"It was horrifying, and no one -- no one -- should have to go through that kind of indignity, really, except for murderers, and there are a few other categories," the cookbook writer told Couric. "But no one should have to go through that. It's a very, very awful thing."
Stewart also said she could not view her time in prison as a "growth experience."
"That you can make lemonade out of lemons," was her response to Couric's question. "What hurts you makes you stronger? No. None of those adages fit at all. It's a horrible experience. Nothing is good about it, nothing."
For Stewart, the worst part about being in prison was being away from her family. As previously mentioned, Stewart had requested to serve her prison time in Florida near her elderly mother. Stewart was unable to do so and felt very isolated while in the West Virginia prison.
Martha Stewart's Comeback After Prison
Many would assume that a stay in prison would be a death sentence for a career like Martha Stewart's. Her whole persona was centered around good home values and positive influences, so a prison sentence should have kicked her out of the entertainment industry.
Instead, however, Stewart's career did not miss a beat.
Before Stewart was even released from prison, NBC announced that she would host a daytime talk show called Martha as well as star in The Apprentice: Martha Stewart. Both shows premiered in late 2005, several months after Stewart was released from prison.
Since her time in West Virginia, Stewart has continued to be a staple in the cooking industry. She has gone on to publish many more cookbooks and appear in countless television shows. Stewart also returned to modeling in 2022, and she has appeared on the cover of Sports Illustrated.
Though she may have lost money and portions of her business, Stewart has continued to thrive in the entertainment industry following the scandal.
