The SEC officially charged America's favorite homemaker with dumping her stock in ImClone Systems off of a tip from her broker, Peter Bacanovic. Allegedly, Bacanovic advised Stewart
to sell after another client of his, ImClone CEO Sam Waksal, dumped his shares ahead of a forthcoming drug rejection from the FDA. Stewart sold, and according to the SEC
investigation, prevented losses of $45,673. She was never convicted of insider trading, but she was found guilty of covering up information during the FBI investigation. She served
five months in federal prison.
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