Washington, D.C., June 4, 2003 The Securities and Exchange Commission today filed securities fraud charges
against Martha Stewart and her former stockbroker, Peter Bacanovic. The complaint, filed in federal court in Manhattan,
alleges that Stewart committed illegal insider trading when she sold stock in a biopharmaceutical company, ImClone Systems,
Inc., on Dec. 27, 2001, after receiving an unlawful tip from Bacanovic, at the time a broker with Merrill Lynch, Pierce,
Fenner & Smith Incorporated. The Commission further alleges that Stewart and Bacanovic subsequently created an alibi
for Stewart's ImClone sales and concealed important facts during SEC and criminal investigations into her trades.
In a separate action, the United States Attorney for the Southern District of New York has obtained an indictment charging
Stewart and Bacanovic criminally for their false statements concerning Stewart's ImClone trades.
SEC Press Release
Litigation Release No. 18169 / June 4 2003
An Open Letter from Martha Stewart
Statement from Martha Stewart's Attorneys
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