Can you explain the Martha Stewarts ImClone Stock Trading case using the IRAC method? The following is a summary of the case.

Martha Stewart is the founder of Martha Stewart Living Omni media Inc. which is a diversified merchandise & media company owned by the sequential brands group. This deals in broadcasting media, internet, merchandise product line. Basically, this case was mainly focused on the crimes of the founder of ImClone's founder, Samuel D. Waskel for doing inside trading to sell stocks owned by the friends & family. he was instructing them to do this in secret manner. It all started when the price of ImClone's stock price was dropping when the approval by FDA for its drug ERBITUX failed due to sale of stocks of the company by its executives at the end of 2001. But the founder, Samuel Waskel got arrested on the charges of insider trading & attempt to sell his own stocks.

ALIZA WASKEL (daughter of Samuel) - sold $2.5 millions in shares (27th Dec.)

JACK WASKEL (father of Samuel)- sold $8.1 millions in shares (27th & 28th Dec.)

JOHN B. LANDES (the General Counsel)- sold $2.5 millions in shares (6th Dec.)

MARTELL (VP for marketing & sales)- sold $2.1 millions in shares (11th Dec.)

The above persons were found guilty with Samuel for doing insider trading of shares. Samuel was found guilty & charged to various crimes including securities fraud and sentenced to 7 years and 3 months in prison. In relation to Martha Stewart, Martha got involved in the case because she was tipped off by her broker friend, Peter Bacanovic about the ImClone insider trading. She thought that ImClone was going to drop so, she sold $230000 in shares (27th Dec. 2001). Stewart would not be caught if the assistant of Bacanovic did not disclose it to investigators. She looked and maintained her innocence all that time but was found guilty. On July 16,2004, she was sentenced to 5 months in prison, 2 years of probation (for lying about a stock sale, conspiracy etc.) and 5 months of home confinement.

The evidence was the statement of assistant, Bananovic, Douglas Faneuil, who was cooperating with FBI providing the information that Martha sold her 4000 shares just one day before the US govt. that approval for fight colon drugs was canceled.

The U.S. Attorney General alleged the following crimes: making of false statements under counts 3 and 4, making conspiracy with her broker friend and obstruction of justice and committing the perjury under count 1 and criminal securities fraud under count 9. The jury of 8 women and 4 men gave the verdict guilty of obstructing the investigation and making false statements.