What do Martha Stewart, Paul Gauguin, and Brian Dennehy have in common?

Entrepreneur Martha Stewart, actor Brian Dennehy and French impressionist painter Paul Gauguin were all stockbrokers early on in their lives! In fact, Martha Stewart and Brian Dennehy both worked for the same Wall Street firm (no longer in existence).

QuestionMark.jpgFrom what I have read, the firm went under due to a scandal that involved some of the firm’s principles receiving kickbacks from a company whose stock they were selling. I was not aware of Stewart’s history on Wall Street and I’ll have to re-read all the articles about her insider trading conviction!

(I incorrectly posted that Stewart was convicted of trading on inside information, but reader ‘CanadianRetiredGuy’ pointed out my error –>) Stewart was found guilty of conspiracy, obstruction of an agency proceeding, and making false statements to federal investigators. From what I understand, her daughter had dated the CEO of ImClone and he and other company executives sold off many shares the day before an FDA ruling on one of their drugs was announced (in which a certain drug was not approved for use). But it seems that Stewart received a call from her stockbroker’s assistant in which he informed Stewart that ImClone’s CEO was selling off his shares in anticipation of the bad news. She served 5 months in prison and a further 5 months under house arrest. Stewart saved about $45,000 from selling before the FDA announcement.

Incidentally, her net worth has been estimated at about $640 million. 

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Preet Banerjee
Preet Banerjee
...is an independent consultant to the financial services industry and a personal finance commentator. You can learn more about Preet at his personal website and you can click here to follow him on Twitter.
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Showing 4 comments
  • CanadianRetiredGuy

    Martha was convicted of "lying to investigators", not insider trading. See: HERE for exact charges.

  • Preet

    Thanks CRG for the correction – it has been amended!

  • Bob Cook

    Brian Dennehy is also a liar. He claimed to have served in Vietnam, when in fact he spent his whole service tour in Okinawa. As far as I know, he has since "ratracted" the lie, and has apologized. This does not diminish the fact that he lied about his service, and that is a grave disrespect to all of us who HAVE served !!

  • steve areeno

    maybe dennehy didnt actually lie. maybe he meant that he served during "the vietnam era." if he apologized, what more do you want from the guy. Its a credit to ovietnam vets that q man would want to lie and make people think hes a vietnam veteran. it shows society looks towards out vietnam veterans with hornor and awe.