Did Martha Stewart get convicted of insider trading?
Minnesota criminal defense attorney Joe Friedberg explains that Martha Stewart did not get convicted of insider trading.
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Martha Stewart is one of the great examples: everybody things that she was convicted of insider trading, when she wasn’t. Martha Stewart probably did not trade on inside information, and she was never charged with it. What she did, is, she did what you never do: she allowed herself to be interviewed by an FBI agent, and she lied to him.
Well, lying to a federal agent – any federal law enforcement person who’s working within the scope of their authority – is a felony in itself. And so, she lied about the type of information she had, and it was no longer necessary to prove that she had committed insider trading. The fact of the matter was if she’d have followed proper legal advice and kept her mouth shut, she’d have never gone to prison.