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Corporate Conflicts



What is Martha stuffing in her stocking this holiday season ?

Corporate 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.
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Other Commentaries:

Former Computer Associates CEO faces new indictment. Could auditors have detected the fraud ?

Adelphia and ex-CEO Rigas to settle fraud case.

Arthur Andersen Conviction Overturned: Too Little Too Late.

Worldcom's Ebbers faces $30 Million Fine and life in prison.

Russian Oil Tycoon Mikhail Khodorovsky: Guilty of Fraud and Victim of Politics?

Accounting Giant KPMG Probed for Unlawful Conduct.

Former CEO of HealthSouth Scrushy acquitted.

Former Tyco CEO Kozlowski convicted, faces 30 years.

Outgoing TOYS R US CEO's Favorite Toy? The Golden Parachute.

Sayanora Citigroup. Japan shuts down Private Banking Unit.

Heist at the Bellagio or plot twist for the New Ocean's Eleven sequel?

Eisner versus Ovitz. The Showdown in Tinseltown.

Marsh sinks deeper in insurance scandal.

Managers disconnected at Verizon.

What is Martha stuffing in her stocking this holiday season?

Is Apprentice Street Smart Candidate a College Graduate?

Outsourcing Employees - coming soon.

Samples of Written Policies:

Conflicts of Interest v1
Conflicts of Interest v2
Conflicts of Interest v3

Audit Committee v1


Sarbanes-Oxley Act of 2002

Final Arthur Andersen Alumni Letter

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