Martha's Datebook

The ImClone stock scandal threatened to soil the empire Martha Stewart built on perfection. Follow her flagstone path to success and see how this former stock broker landed in hot water.
August 3, 1941
Martha Kostyra is born in Jersey City, N.J. One of six children, Martha grows up in a working class Polish-American family in Nutley, N.J. Her mother, a high school gym teacher also named Martha, is an expert in the fundamentals of home making, while her father Eddie, a pharmaceutical salesman, is known for having a green thumb.
September 1959
A top student in high school, Martha heads off to Barnard College in New York City with help from a partial scholarship and money made from a promising part-time modeling career. She studies history and architectural history.
Taking the name that will one day be worth millions, Martha marries Andrew Stewart, a Yale law student. Meanwhile, Glamour magazine names her one of the Best Dressed College Girls of the year, and Martha temporarily drops out of school. She returns to finish her degree at Barnard a few years later.
Martha's only child, a daughter named Alexis, is born.
Encouraged by her father-in-law, Martha becomes a licensed stock broker in a field that held few women at the time. She is extremely successful, according to former boss Andy Monness, but leaves Wall Street after a five-year run. Monness recently told Fortune magazine that Martha "had a hunger to get into something where she could control all the elements."
The Stewarts leave New York for Westport, Conn., where Martha undertakes her first major domestic project, renovating a 200-year-old farm house. The fixer-upper becomes Turkey Hill Farm, headquarters for many of Martha's print and TV projects in the coming years.
A growing catering business leads to the publication of Stewart's first book, "Entertaining." Featuring recipes for a variety of occasions alongside eye-popping photos of imaginative displays, "Entertaining" officially launches the Martha Stewart empire.
With four books, a newsletter, a PBS special and other endeavors cooking in Martha's kitchen, Stewart is dubbed "the Barbara Cartland of food" by Newsweek magazine. In one of the first signs of a backlash against the domestic diva, the magazine also notes her sometimes-shaky standing among other food professionals and her overwhelming emphasis on "the art of showing off."
U.S. retailing giant Kmart hires Stewart as a lifestyle consultant, first using her primarily in advertisements and publicity features, and later building her own product line, starting with bedding and table ware.
Nov. 1990
Years before Oprah and Rosie, Stewart partners with Time Inc. to launch Martha Stewart Living. The glossy magazine puts its editor-in-chief on the cover and features her detailed entertaining and decorating instructions inside.
After a long separation, Martha and Andy's 29-year marriage ends in divorce. Andy Stewart obtains a court order to prevent Martha from talking about the split.
Sept. 1993
"Martha Stewart Living," a 30-minute weekly syndicated television show, premieres. Stewart explains the difference between jam and jelly and gets down and dirty with compost in the first episode.
Westport neighbors Tom Connor and Jim Downey publish "Is Martha Stewart Living?", a 64-page parody of her magazine. Items include how-tos on stenciling highway signs and a look at Stewart's glue-gun rack.
Feb. 1997
For a reported price of $2 million, Stewart buys out most of Time Inc.'s stake in her magazine and TV show. The move propels her fortunes on a solidly upward path, and the media's coverage of her business smarts begins to overshadow criticisms of her perfectionism and personal life.
Oct. 19, 1999
Martha Stewart Living Omnimedia stock is offered to the public on the New York Stock Exchange. Opening at $18 a share, the price closes up 95 percent at $35. The IPO raises millions for the company, and makes Stewart a billionaire on paper.
For the first time, Stewart makes Forbes magazine's list of America's 400 wealthiest people.
Jan. 22, 2002
Kmart files for Chapter 11 bankruptcy protection, following disappointing holiday sales, credit downgrades and a stock slide. Stewart, whose Everyday brand generated about $1.5 billion in Kmart sales in 2001, says she'll stick with the retailer "for the foreseeable future."
March 2002
Stewart is nominated and later approved as a member of the New York Stock Exchange board, to serve a two-year term.
June 6, 2002
A congressional investigation of Stewart's sale of nearly 4,000 shares of ImClone stock is first reported. Stewart shed the shares about six months before, a day before the FDA announced it would not consider the biotech firm's experimental cancer drug. Stewart says she had previously agreed with her broker to sell the shares if they dipped below $60, and did not engage in insider trading.
June 12, 2002
A letter from Stewart's lawyer to the House Energy and Commerce Committee says she had no inside knowledge about any actions the FDA was taking about ImClone. It does not mention whether she knew that her friend, ex-ImClone CEO Samuel Waksal, was trying to sell shares and that his daughter had dumped a large block of stock.
June 25, 2002
Stewart makes her first public comments about the ImClone scandal during her weekly segment on CBS News' The Early Show. She predicts that the investigation of her stock dealings will be resolved and "I will be exonerated of any ridiculousness."
Aug. 6, 2002
A request for additional documents from Stewart, including e-mails and records from her business manager, comes in a letter from the House committee. She's also asked to appear for an interview. Stewart has said such a meeting would be premature.
Oct. 2, 2002
Faneuil pleads guilty to a misdemeanor charge of receiving money and other valuables for keeping quiet about Stewart's sale of ImClone Systems Inc. shares last December. In exchange for stonewalling probers, Faneuil was offered an extra week of vacation and a free airline ticket and was given an increase in his commission rate, court papers said.
Oct. 3, 2002
Stewart resigns from the board of directors of the New York Stock Exchange.
Oct. 15, 2002
The ImClone insider trading scandal results in a guilty plea from ex-CEO Sam Waksal to charges of bank fraud and conspiracy. It is unclear whether information regarding the Martha Stewart investigation was offered as part of his plea. He tells the court that, "I am aware that my conduct, while I was in possession of material non-public information, was wrong."
Oct. 31, 2002
The federal probe of the ImClone sale continues to hurt the bottom line at Martha Stewart Living Omnimedia Inc., with the multimedia empire reporting a 42 percent drop in third-quarter earnings and warning that fourth-quarter earnings will fall far short of analysts' expectations. The company also announces a four-issue test of a new publication titled Everyday Food, the first magazine that does not bear Stewart's name.
June 4, 2003
A federal grand jury returns a nine-count indictment on securities fraud, obstruction of justice and conspiracy charges against Stewart and her broker, Peter Bacanovic. Stewart pleads innocent to all charges. Meanwhile, the Securities and Exchange Commission files a civil suit accusing her of insider trading and which seeks to bar her from being in charge of any public company. Late in the day, she resigns as chairwoman and CEO of Martha Stewart Living Omnimedia.
June 10, 2003
ImClone Systems founder Sam Waksal is sentenced to seven years and three months in prison for his role in the insider-trading scandal. He is also ordered to pay more than $4 million in fines and back taxes. Waksal makes an emotional courtroom apology to his family and former employees before the sentence is delivered.
July 23, 2003
ImClone Systems founder Sam Waksal arrives at a minimum-security prison about 75 miles from Philadelphia to begin serving his prison sentence. "I deeply regret the mistakes I've made that have brought me here today," Waksal said after arriving at the Schuylkill Federal Correctional Institution in style a Range Rover but dressed comfortably in blue jeans, white sneakers and a blazer.
Sept. 8, 2003
Stewart's lawyers hit a roadblock when a judge rejects their demand that the government investigate the source of pre-indictment leaks in her case. U.S. District Judge Miriam Goldman Cedarbaum was "not persuaded" that reports the grand jury would not charge Stewart with insider trading might have influenced grand jurors before they handed up the indictment.
Jan. 6, 2004
Jury selection begins ahead of Stewart's trial. Meanwhile, the government files a new indictment against Stewart and Bacanovic, making mostly cosmetic and typographical changes. As a result they will have to re-enter their pleas, but it is not expected to cause a delay.
March 5, 2004
Stewart is found guilty of conspiracy, making false statements and obstruction of justice, charges that carry up to 20 years in prison. Her ex-stockbroker, Peter Bacanovic, is convicted on charges including conspiracy, perjury and obstruction of justice, but is acquitted of making a false statement. Trading in Martha Stewart Living Omnimedia stock is halted after the verdict.
March 15, 2004
Stewart resigns from the board and as chief creative officer of Martha Stewart Living Omnimedia. She will remain affiliated with her namesake media empire in a new role of founding editorial director, working on creative issues, brand building and writing books. Had she not stepped down, her departure from the board and any executive position would likely have been forced by the Securities and Exchange Commission, since she is a convicted felon.
March 31, 2004
Stewart's lawyers ask for a new trial, claiming one of the jurors who convicted her lied about his criminal record during jury selection. In court papers, her lawyers say they have learned since the verdict that juror Chappell Hartridge was arrested for an alleged assault on a woman in 1997. The papers say Hartridge was arraigned on the assault charge, which was later dropped.
May 5, 2004
Stewart's request for a new trial is denied. Judge Miriam Goldman Cedarbaum says whether or not Stewart's claims that a juror lied repeatedly on his jury questionnaire are true, they do not meet the legal standard of showing the juror would have been excused for bias during jury selection.
May 21, 2004
Government witness Larry F. Stewart (no relation to defendant) is charged with giving false testimony during the trial. Stewart testified about Bacanovic's alleged doctoring of the worksheet listing Martha Stewart's stock portfolio, claiming he had examined the document on two occasions. Secret Service officials say that never happened.
July 8, 2004
Judge Cedarbaum denies Stewart's latest request for a new trial based on allegations that ink expert Larry F. Stewart lied on the witness stand. The judge cites "overwhelming independent evidence" in support of the jury's guilty verdict. Stewart's lawyer says the matter will be brought up on appeal. Click here to read the ruling (.pdf format)
July 16, 2004
Martha Stewart is sentenced to five months in prison, five months of home confinement, and two years' probation. Stewart also is fined $30,000. Stewart is spared an immediate trip to federal prison when Judge Cedarbaum stays her sentence pending appeal. Her ex-stockbroker, Peter Bacanovic, receives the same sentence and must pay a $4,000 fine.
July 23, 2004
Douglas Faneuil is fined $2,000 but spared both prison and probation. He had faced up to a year in prison, but prosecutors recommended no jail time after his testimony helped them secure Stewart's conviction.
Sept. 15, 2004
Stewart says she has decided to surrender for prison as soon as possible, citing the need "to put this nightmare behind me, both personally and professionally." She says she hopes to start her sentence right away and be out by early 2005. She adds, "I must reclaim my good life."
Sept. 21, 2004
Judge Cedarbaum orders Stewart to surrender for prison by Oct. 8, and recommends that U.S. prison officials assign her to one of the two prison camps - in Danbury, Conn., or Coleman, Fla. - the celebrity homemaker had requested. Stewart still plans to ask a federal appeals court to overturn her conviction.
Sept. 29, 2004
Stewart is told to report to the minimum-security women's prison camp at Alderson, W. Va., by Oct. 8. She says she had hoped to be sent to a facility closer to her family and attorneys, but a source says Alderson was chosen because it is more remote and less accessible to the media than the locations she'd requested.
Oct. 5, 2004
Jurors acquit ink expert Larry Stewart of charges that he lied on the stand during Martha Stewart's trial. The homemaking expert had seized on the perjury case in her bid to have her conviction thrown out. The two Stewarts are not related.
Oct. 8, 2004
Stewart reports to prison in Alderson, W.Va. The celebrity homemaker says on her Web site that she is looking forward to returning to work in March and enjoying "many brighter days ahead."
Dec. 8, 2004
Plans are announced for Stewart to revive her daily homemaking show in September 2005, this time with a live audience, celebrity guests and the help of "The Apprentice" producer Mark Burnett. Stewart, in prison and not allowed to conduct business, was not involved in making the deal to syndicate the show, but Susan Lyne, president of Martha Stewart Living Omnimedia, says the star is "very pleased."
March 4, 2005
Stewart is released from prison, leaving a federal women's prison camp in Alderson, W.Va., at about 12:30 in the morning. Her private jet whisks her home to Westchester County, N.Y., where she begins serving the home detention portion of her sentence at her multimillion-dollar 153-acre estate. "Certainly," she says, "there is no place like home."
Aug. 3, 2005
In a terse statement, Stewart's lawyer announces that her release from home confinement and her electronic anklet has been delayed three weeks to the end of August 2005. It wasn't revealed what Stewart did to earn the extra three weeks of confinement.
Nov. 2005
Martha Stewart Living Omnimedia launches a 24-hour satellite radio network with Sirius in November 2005, on which Stewart currently hosts a weekly call-in show.
Jan. 6, 2006
A decision by the U.S. Court of Appeals for the Second Circuit in New York affirms that Stewart's conviction will not be overturned. The court also rules that Bacanovic's sentence could be reviewed. The decision could impact Stewart from returning as head of her empire.
Aug. 7, 2006,
Stewart will pay about $195,000 and cannot serve as the director of a public company for five years under a settlement announced on civil insider trading charges with the SEC. She also agrees to a five-year limitation on the scope of her service as an officer or employee of a public company. Bacanovic agrees to pay a penalty totaling about $75,000. In a seperate order, the SEC barred Bacanovic, a former Merrill Lynch employee, from associating with a broker, dealer or investment adviser.