Will Martha go to the slammer...

JR · 06-05-2003

An Open Letter From Martha Stewart

To My Friends and Loyal Supporters,

After more than a year, the government has decided to bring charges against me for matters that are personal and entirely unrelated to the business of Martha Stewart Living Omnimedia. I want you to know that I am innocent -
and that I will fight to clear my name.

I simply returned a call from my stockbroker. Based in large part on prior discussions with my broker about price, I authorized a sale of my remaining shares in a biotech company called ImClone. I later denied any wrongdoing in public statements and in voluntary interviews with prosecutors. The government's attempt to criminalize these actions makes no sense to me.

I am confident I will be exonerated of these baseless charges, but a trial unfortunately won't take place for months. I want to thank you for your extraordinary support during the past year - I appreciate it more than you will ever know.

For more information, please visit the special website I have established for you at www.marthatalks.com. I will do my best to post current information about the case, and you will be able to contact me there at martha@marthatalks.com. I look forward to hearing from you.

Sincerely,

=========================

Statement From Martha's Attorney

The following is a statement from Robert G. Morvillo and John J. Tigue, attorneys for Martha Stewart:

NEW YORK, June 4, 2003 -- Robert G. Morvillo and John J. Tigue, personal attorneys for Martha Stewart, today issued the following statement on her behalf:

"Martha Stewart has done nothing wrong. The government is making her the subject of a criminal test case designed to further expand the already unrecognizable boundaries of the federal securities laws.

The indictment reveals that the predicate for the entire investigation - the accusation that Martha Stewart sold her ImClone shares based on inside information - has proven to be false. It is most ironic that Ms. Stewart faces criminal charges for obstructing an investigation which established her innocence. This turn of events can only be characterized as bizarre and raises questions about the motivation for such peculiar charges.

Though the government has not charged her with insider trading, it alleges that public statements drafted by her distinguished attorneys in June 2002 about the reasons she sold ImClone stock constitute a fraud. These unprecedented charges are baseless. The press releases were issued in response to Congressional leaks that Ms. Stewart sold her ImClone shares because she was tipped that its cancer drug application was going to be denied - another allegation that has proven to be absolutely false. In this country, those who have been falsely accused of a crime have always been free to proclaim their innocence without fear of being punished by the government for their resistance. These press releases did little more than truthfully deny that she had been tipped on Erbitux. To attempt to criminalize such statements and use the federal securities laws to deprive those under investigation of the ability to speak out in their own defense violates basic principles of American democracy and is most disturbing.

As to the remainder of the allegations, we are also unaware of any case in which a witness has voluntarily submitted to an unsworn interview by a federal prosecutor -- and then been prosecuted for allegedly false statements that have nothing to do with the stated purpose of the interview. In this case, the focus of the interview was Erbitux and Martha truthfully denied being tipped as to its status.

Why then has the government, after nearly a year and a half, chosen to file these charges? Is it for publicity purposes because Martha Stewart is a celebrity? Is it because she is a woman who has successfully competed in a man's business world by virtue of her talent, hard work and demanding standards? Is it because the government would like to be able to define securities fraud as whatever it wants it to be? Or is it because the Department of Justice is attempting to divert the public's attention from its failure to charge the politically connected managers of Enron and WorldCom who may have fleeced the public out of billions of dollars?

We urge the media to ask these questions - and to consult with legal experts on the validity and broader implications of these extraordinary charges. We believe such an inquiry will verify that this indictment is unique and goes well beyond any other criminal securities law case. We ask the public to withhold judgment until the government's unfounded charges are publicly aired and refuted. When this happens, we are convinced that justice will follow and Martha Stewart will be fully exonerated."

Martha Stewart

06-05-2003	#30
JR Members The global leader in pay-per-view AEBN Join Date: Jan 2003 Location: in my chair Posts: 3,320	An Open Letter From Martha Stewart To My Friends and Loyal Supporters, After more than a year, the government has decided to bring charges against me for matters that are personal and entirely unrelated to the business of Martha Stewart Living Omnimedia. I want you to know that I am innocent - and that I will fight to clear my name. I simply returned a call from my stockbroker. Based in large part on prior discussions with my broker about price, I authorized a sale of my remaining shares in a biotech company called ImClone. I later denied any wrongdoing in public statements and in voluntary interviews with prosecutors. The government's attempt to criminalize these actions makes no sense to me. I am confident I will be exonerated of these baseless charges, but a trial unfortunately won't take place for months. I want to thank you for your extraordinary support during the past year - I appreciate it more than you will ever know. For more information, please visit the special website I have established for you at www.marthatalks.com. I will do my best to post current information about the case, and you will be able to contact me there at martha@marthatalks.com. I look forward to hearing from you. Sincerely, ========================= Statement From Martha's Attorney The following is a statement from Robert G. Morvillo and John J. Tigue, attorneys for Martha Stewart: NEW YORK, June 4, 2003 -- Robert G. Morvillo and John J. Tigue, personal attorneys for Martha Stewart, today issued the following statement on her behalf: "Martha Stewart has done nothing wrong. The government is making her the subject of a criminal test case designed to further expand the already unrecognizable boundaries of the federal securities laws. The indictment reveals that the predicate for the entire investigation - the accusation that Martha Stewart sold her ImClone shares based on inside information - has proven to be false. It is most ironic that Ms. Stewart faces criminal charges for obstructing an investigation which established her innocence. This turn of events can only be characterized as bizarre and raises questions about the motivation for such peculiar charges. Though the government has not charged her with insider trading, it alleges that public statements drafted by her distinguished attorneys in June 2002 about the reasons she sold ImClone stock constitute a fraud. These unprecedented charges are baseless. The press releases were issued in response to Congressional leaks that Ms. Stewart sold her ImClone shares because she was tipped that its cancer drug application was going to be denied - another allegation that has proven to be absolutely false. In this country, those who have been falsely accused of a crime have always been free to proclaim their innocence without fear of being punished by the government for their resistance. These press releases did little more than truthfully deny that she had been tipped on Erbitux. To attempt to criminalize such statements and use the federal securities laws to deprive those under investigation of the ability to speak out in their own defense violates basic principles of American democracy and is most disturbing. As to the remainder of the allegations, we are also unaware of any case in which a witness has voluntarily submitted to an unsworn interview by a federal prosecutor -- and then been prosecuted for allegedly false statements that have nothing to do with the stated purpose of the interview. In this case, the focus of the interview was Erbitux and Martha truthfully denied being tipped as to its status. Why then has the government, after nearly a year and a half, chosen to file these charges? Is it for publicity purposes because Martha Stewart is a celebrity? Is it because she is a woman who has successfully competed in a man's business world by virtue of her talent, hard work and demanding standards? Is it because the government would like to be able to define securities fraud as whatever it wants it to be? Or is it because the Department of Justice is attempting to divert the public's attention from its failure to charge the politically connected managers of Enron and WorldCom who may have fleeced the public out of billions of dollars? We urge the media to ask these questions - and to consult with legal experts on the validity and broader implications of these extraordinary charges. We believe such an inquiry will verify that this indictment is unique and goes well beyond any other criminal securities law case. We ask the public to withhold judgment until the government's unfounded charges are publicly aired and refuted. When this happens, we are convinced that justice will follow and Martha Stewart will be fully exonerated." Martha Stewart __________________