Martha Stewart, contrary to popular belief, did not go to jail for insider trading. She went to jail for lying to officials about it. Had she admitted that she knew insider trading was going on she would not have gone to jail. Her sentencing was conspiracy, obstruction of an agency proceeding, and making false statements to federal investigators. Her activity, while immoral, was not illegal, as she received the information second-hand.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.