Stewart Settles With SEC - Broadcasting & Cable

Stewart Settles With SEC

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Martha Stewart has agreed to pay the government $58,062 to cover losses she avoided and another $137,019 in civil penalties to settle charges of insider trading leveled by the Securities and Exchange Commission.

She also agreed not to serve on the board of any company for five years.

Stewart's broker, Peter Bacanovic, also agreed to pay the $645 he made in commission-plus interest--on the sale, plus a $75,000 fine.

Back in July 2004, Stewart was sentenced to five months in prison and two years probation in federal court--the minimum sentence--for lying to government investigators about a Bacanovic stock tip based on nonpublic information that prompted her to sell ImClone stock in advance of news that the FDA had denied its license for a new cancer drug.

The lifestyle mogul was also sentenced to five months of home confinement and a $30,000 fine.

Stewart appealed that conviction, but served the time anyway to get it out of the way and begin work on her syndicated talk show, which failed to take off.

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