“Even if they had never met her in person, people would talk about being like Martha, dressing like Martha, or having tastes like Martha” (Knowledge Wharton, 2004). Martha Stewart, CEO of Omni Media, represents the company's image more than anything else; being tied directly to the company can damage reputation when the CEO is in the midst of a public scandal. After all, Stewart was an icon for many women, and her reputation is what helped her brand be so successful. From magazines to television programs Martha Stewart Living Omnimedia was becoming a very successful company. Martha Stewart Living Omnimedia will also be referred to as MSLO. Background to the Scandal In 2001, Martha Stewart was accused of illegal insider trading in ImClone Systems stock which slowly ruined her reputation. Stewart insisted that she had agreed with her stockbroker to sell if the stock fell below $60 a share. Throughout the investigation she stuck to her story and had serious doubts about whether she would be jailed. Keep in mind that Stewart held a Series 7 license at the time; as a former stockbroker, it appears he knew what he was doing was illegal. In 2003, the SEC filed securities fraud charges against Stewart and her stockbroker (Carlin, 2003). To separate MSLO from Stewart, she stepped down as interim CEO. In July 2004 she was finally sentenced to five months in prison and five months of house arrest (Crawford, 2004). Chronology of events, foldable. (Associated Press, 2004)•Dec. 26, 2001: Sam Waksal, founder of ImClone Systems (IMCL), is informed that the FDA will not review his cancer drug Erbitux. Did the daughter sell her shares?Dec. 27, 2001: Martha Stewart sells all of her shares of ImClone. This links her to Waskal, prosecutors believe she… half of document… p://money.cnn.com/2004/07/16/news/newsmakers/martha_sentencing/Fox News. (2005, March 5). Martha Stewart released from prison. Fox News. Retrieved February 4, 2014, from http://www.foxnews.com/story/2005/03/05/martha-stewart-released-from-prison/Knowledge Wharton. (2004, April 7). When the CEO is the brand but falls from grace What's the next comment. Retrieved January 20, 2014, from http://knowledge.wharton.upenn.edu/article/when-the-ceo-is-the-brand-but-falls-from-grace-whats-next/Martha Stewart and Her Incredible Return -Oprah.com. (n.d.). Oprah.com. Retrieved February 11, 2014, from http://www.oprah.com/oprahshow/Martha-Stewart-and-Her-Incredible-ComebackSchoen, J. (reprint). Will Martha be able to turn her business around? Msnbc.com. Retrieved January 22, 2014, from http://www.nbcnews.com/id/7068355/ns/business-us_business/t/can-martha-turn-her-businesses-around/