Martha Stewart on Prison: I Lost $1 Billion

by Slashfood Editor, Posted Nov 20th 2009 @ 1:30PM

Photo: Mario Tama, Getty Images

Martha Stewart says her five-month prison sentence cost her $1 billion.

Speaking with "Nightline," Stewart says the "legal mess" was devastating to her personal worth.

"Oh, it's inestimable -- probably more than a billion dollars, of course, and if you add in what the company was worth, absolutely," Stewart says. "And I'm a major shareholder in the company. When you are prosecuted in such a way and a great portion of wealth is dissipated, all I could think so much is 'What I could have done with all of that for the good of mankind?'"

"Nightline" followed Stewart for a day in a news piece that aired Thursday. In it, Stewart dishes on Rachael Ray as well as her 2004 legal troubles.

"I knew we had a really good thing going, and I really knew that I was not guilty of anything that could possibly harm my company," Stewart tells Cynthia McFadden. "I was pissed, OK? Pissed that something could actually affect that. The company had nothing to do with anything, but yet because I am the face and the brand -- my person -- it certainly had a harmful effect."

She says she's put that period of her life behind her.

"How can I kick myself?" she says. "There are other people to be kicked. Enough. Let's get on with the future."

Filed Under: Business, Television/Film, Food News, Celebrities
Tags: cynthia mcfadden, CynthiaMcfadden, martha stewart, MarthaStewart, nightline, prison

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Reader comments (Page 3 of 3)

11-21-2009 @1:40PM mahafakir said... Martha Stewert belongs in Jail. She used the attorneys to get a bargain low jail term and he spent only a small portion of that term in jail. She was told to stay away from her company until the year 2011. She did not. She is running the company and violationg the conditions that allowed her to get out of jail She should be sent back to jail and should be barred from running a public company.
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11-21-2009 @2:58PM Tricia said... Well, GEE WHIZ, MARTHA!
First of all, when you do something that's against the law, YOU GO TO JAIL. You really weren't such "hot crap" to me, to begin with, so you really have nothing to worry about, as far as your "face and image" being ruined is concerned! Secondly, your "lines" of merchandise, especially bedding and curtains, are ALL made of such boxy, geometric patterns, that I wouldn't ever use them in my home! They're ugly, and BORING. Ever heard of leaves? flowers? anything OTHER THAN STRIPES, PLAIDS, OR MADRAS? You were a sour-puss then, and now you're just MORE of a sour-puss. EVERYONE who goes to jail LOSES SOMETHING - A LOT of things -- respect, (including self-respect!), time with loved ones, self-assurance, and a host of other very important qualities they really NEED when they get out, that aren't there for them. I feel much more sorry for the hundreds, thousands, if not millions, of mothers sitting in dinky county jails, away from their homes and children, for just smoking a joint or some other minor offense (especially minorities -- I am Caucasian, but I am not blind to the fact that there weren't very many of US WHITE MOMS in that jail! Color DOES STILL matter to "JOHN LAW!" You, I feel NO PITY for. You scammed, you got caught, you got what you deserved!
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11-21-2009 @1:57PM Shape up and shut up, Martha! said... OK, so I thought they used her to teach a lesson. And I thought the sentence was a bit harsh. But SHUT UP already, Martha, you did the crime, so you did the time. I don't see you having done a heck of a lot of good for mankind. I think you've kept your dollars pretty close to your vest! If you hadn't lied to federal investigators, you wouldn't have lost anything! Did you not learn your lesson?
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11-21-2009 @1:47PM mahafakir said... I'm not a fan of Rachel Ray. But Rachel Ray is 1000 times the woman Martha Stewert is. Rachel Ray does not defraud the public investors and does not violate the securities laws. She is a better cook than Martha is. Martha can squeeze the teats of Sheep and ride the horses and because she can do that she thinks she could also milk humans. Martha is very ill conceived.
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11-21-2009 @1:49PM Sandra-A1 said... Oh poor Martha....she lost billions while serving time for doing something that she KNEW was breaking the law! Oh yes my heart is just breaking for her....(said loaded with sarcasm)
My advice is Martha...don't do the crime if you can't afford to do the time.
And that advice my dear is "a good thing!"
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11-21-2009 @1:59PM Jennifer said... Oh cry me a river Martha!! You broke the law and paid for it!! Your prison time did not cost you money, YOU cost you money! Had you played by the rules, none of that would have happened. You are an uptight b*tch who thinks the worls owes her something, when in fact, the world would be the same without you. I have never paid one red cent for anything affliated with your name, and never will!! Grow up Martha, and put your big girl panties on!
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11-21-2009 @2:02PM Sandra-A1 said... One more thing Martha....quit taking all the credit for the work others do! Everyone knows that you have peopled working for you who come up with all of the recipes and decorating ideas that you take all of the credit for. I bet you have not come up with anything completely by yourself in a LONG time! Sitting in a conference room and giving your approval on someone else's work is NOT coming up with the idea yourself! That Martha is NOT "a good thing!"
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11-21-2009 @2:22PM michele said... She is such a witch!! Her show used to be on the NBC affiliate, it is now on UPN44 which usually airs bad movies, and highschool sports. I don't even watch her program anymore.
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11-21-2009 @2:40PM felicia said... you know what, Martha? You may read all these blogs and you may not...if you do, I bet we are all just simply dismissed...please don't do that, Martha...all these people .... we make you your billions...seems that it must take so much energy being miserable...try living day to day...on the street... in a mission with no food....that's miserable
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11-21-2009 @2:28PM caanimal3008 said... Martha stewart disgusts me. If it was anyone else they would be spending YEARS in prison, not just months. Oh wait, wasn't there someone else who got busted along w/ her that got YEARS in prison instead of just some slap on the wrist? Maybe Samual Waksal would have enjoyed such a light sentence instead of the being forced to pay $4.3 million and spending more then 7 years in prison. I wonder how much money that dumb bimboo would have "lost" if she got sentence the same as someone else who did the exact same thing... Stupid bitch needs to shut the hell up and stop trying to get people to see her as the one who did no wrong.
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11-28-2009 @8:25PM Jabo said... Too bad she got out of the slam. She shoulda done life.
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11-29-2009 @12:09AM Kyle Krol said... Jamie Dimon planted "moles" in Wamu??? JPMorgan committed corporate fraud???

http://www.kccllc.net/documents/0812229/0812229090501000000000002.pdf

Wamu's claims against JPMorgan/Chase;

http://wmish.com/doc/gov/0603/JPM_V_WMI_-_ANSWER.PDF
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11-29-2009 @12:13AM Kyle Krol said... Wamu TRUTH...

PLEASE READ THESE COURT DOCUMENTS!

JPMorgan admits that the FDIC took over a solvent bank in one of the latest court documents...

I'm enclosing a few more documents filed through the BK court in regards to a declaration of Thomas M. Blake (http://www.crai.com/ProfessionalStaff/listingdetails.aspx?id=1276 ).

The declaration can be found in 103-4.pdf at http://www.mediafire.com/?sharekey=3b830df9f3d0e6fce7c82ed4b8f0c380aff12395630f22f3ce018c8114394287
Quoting:
12. Based on my review to date, there is no indication that the OTS performed a solvency analysis consistent with the test for insolvency specified in the Bankruptcy Code. There is no indication that the OTS assessed the fair sale-able value of the assets of WMB (or WMI). Nor is there an indication that OTS compared the fair sale-able value of the assets of WMB (or WMI) to the total amount of either company’s respective liabilities. There is no indication that the OTS performed a comprehensive cash flow analysis of WMB (or WMI). Instead, the OTS found that “WMB met the well-capitalized standards through the date of receivership.”8 Thus, without a thorough analysis of the assets, liabilities and capital of WMI and WMB, it is not possible to come to a reliable conclusion concerning the financial solvency of either entity, whether on a consolidated or stand-alone basis.

Here is another document that says as of August 14, 2008:
"We propose to decapitalize WMBfsb by returning $20 billion of capital to its parent. The $20 billion will include the master note of approximately $7 billion, proceeds from $3.5 billion of Discount Notes and cash generated through additional wholesale deposits and advances from FHLB Seattle. We propose the payment of at least $10 billion by September 30, 2008 and the remaining $10 billion through December 2009."

"The net balance sheet of WMBfsb will be approximately $34 billion to $36 billion after Project Fillmore. The leverage ratio will decrease to 25% from 62%. A well-capitalized institution requires an 8% or higher leverage ratio."

Read reference page 45 of DOCUMENT 103-1.pdf from here:
http://www.mediafire.com/?sharekey=3b830df9f3d0e6fce7c82ed4b8f0c380aff12395630f22f3ce018c8114394287

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11-29-2009 @12:13AM Kyle Krol said... Enclosed is a link to the affidavit of Doreen Logan who is the Controller/ Assistant Treasurer of Wamu who states that there was no liquidity problems;

http://www.google.com/search?hl=en&ie=ISO-8859-1&q=%20Ex.%20D%20to%20Affidavit%20of%20Doreen%20Logan%20%28%201%20/07-3/08%20Account%20Statements%29%20A-46%20...&btnG=Search

Remember, WMBfsb was also taken from the holding company and sold to JMorgan/Chase with all of the other assets for only $1.88bil.....

Please, take some time and read these documents. They are a bit long but well worth the read. Don't you wonder why the main stream media doesn't mention the suppose "failure" of the largest financial institution in America? Wamu was a 100+ year old company.....Here is a link to all documents filed through the BK Court;

http://www.kccllc.net/wamu
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