Washington, DC, August 7, 2006--Martha Stewart will pay about $195,000 and cannot serve as the director of a public company for five years under a settlement on insider trading charges announced Monday with the Securities and Exchange Commission.
Under the settlement, Stewart agrees to an injunction, disgorgement of losses she avoided, and the maximum penalty of three times the losses she avoided, for a total of about $195,000 relating to her sale of ImClone Systems Inc. stock in December 2001.
Her broker Peter Bacanovic agreed to pay a penalty totaling about $75,000. In a separate previous order, the SEC barred Bacanovic, a former Merrill Lynch employee, from associating with a broker, dealer or investment adviser.
