is Martha stuffing in her stocking this holiday season ?
Conflicts of Interest at Martha Stewart:
Martha Stewart is currently serving a 5 month prison term at Alderson Federal
Prison in West Virginia. Ironically, it was not for insider trading but for perjuring
herself while providing testimony at her court hearing in connection with allegations
of trading on insider information from Peter Bocadonovich, her broker at the time
from Merrill Lynch, on her personal brokerage account.
It is reported that
after incurring nearly $2 million in legal fees for her defense, Martha Stewart
has requested that Martha Stewart Living Omnimedia (MSO) reimburse her for those
expenses. Since the initial allegations arose from her personal trading account,
I believe it would be a direct conflict of interest and major disservice to all
shareholders in MSO if Ms. Stewart were to be reimbursed for her personal expenses
regardless if she is a majority shareholder and chairperson of MSO.
2004 Nelson Chin.
inquire about consulting or speaking engagements, e-mail: Nelson