If jurors for Martha Stewart鈥檚 criminal trial share James S. O鈥橰ourke IV鈥檚 assessment of her, it would not be a good thing for the domestic diva.p. O鈥橰ourke, professor of management and director of the Fanning Center for Business Communication at the University of 91吃瓜鈥檚 Mendoza College of Business, is quite familiar with Stewart鈥檚 case.p. Last year, he directed a Fanning Center case study of Stewart鈥檚 legal troubles stemming from her December 2001 sale of 3,928 shares of ImClone Systems stock. Stewart, who was a friend of ImClone founder Sam Waksal, sold the shares just before the Food and Drug Administration rejected the company鈥檚 cancer drug. Prosecutors allege Stewart tried to cover her tracks by lying to investigators and shareholders of her publicly traded company, Martha Stewart Living Omnimedia.p. 91吃瓜鈥檚 Fanning Center regularly publishes case studies of companies in the public eye. The studies are used in business school classrooms to generate discussion and analysis.p. 鈥淏usiness education is heavily dependent on the case study method,鈥� O鈥橰ourke said. 鈥淚n general, case studies are written to help illustrate some aspect of managerial information gathering and decision making.鈥漰. Studies are never 鈥渨ritten for the purpose of naming heroes and villains,鈥� O鈥橰ourke added, and in fact the study itself is a neutral, factual account of Stewart鈥檚 case.p. But that doesn鈥檛 mean O鈥橰ourke hasn鈥檛 formed a few opinions on the woman who built a media empire on her talent for cooking, gardening and decorating.p. >From the beginning, Stewart has mishandled the accusations of insider trading, O鈥橰ourke said.p. 鈥淓arly on, she thought she鈥檇 beat it,鈥� he said.p. O鈥橰ourke pointed to Stewart鈥檚 decision not to hire a criminal attorney initially as a sign of her overconfidence.p. But why be so cavalier when your self-built, multimillion dollar empire is on the line?p. O鈥橰ourke blamed it on that quality that foils many a tragic hero or heroine: Hubris. Stewart could have dealt with the problem more than a year ago by admitting to the mistake, paying a fine and moving on, he said.p. Instead, she 鈥渄ug in her heels鈥� because of her intense pride, O鈥橰ourke said.p. Stewart now faces criminal charges of securities fraud, conspiracy, obstruction of justice and making false statements.p. The securities-fraud charge alleges Stewart misled shareholders about the ImClone investigation to keep her company鈥檚 stock price from dropping.p. A former stockbroker, Stewart held a Series 7 license to sell securities and was a New York Stock Exchange director.p. She clearly knew the rules, O鈥橰ourke said.p. Since Stewart鈥檚 June 4 indictment, she has set up the Web site . The site includes an open letter from Stewart as well as notes from fans and pro-Stewart op-ed pieces from various publications. 鈥淲hat they鈥檙e trying to do is influence public opinion,鈥� O鈥橰ourke said. 鈥淭oo late for that.鈥漰. O鈥橰ourke is equally unmoved by claims that Stewart鈥檚 prosecutors are motivated by sexism or the desire to make an example out of a celebrity.p. 鈥淚t isn鈥檛 that she鈥檚 getting more attention from the U.S. attorney,鈥� he said. "The attention she鈥檚 getting is in the press.p. 鈥淭here are plenty of people who are being prosecuted who aren鈥檛 celebrities.鈥漰. Including, he added, ImClone鈥檚 Waksal.p. The Fanning Center鈥檚 interest in the case, however, is not so much in Martha Stewart the person but Martha Stewart the brand name.p. Stewart鈥檚 company was built on her image, and her image was everywhere.p. There鈥檚 really no comparison, O鈥橰ourke said, although Oprah Winfrey may come close. But even celebrity designers like Ralph Lauren, Tommy Hilfiger and Steve Madden are merely the people who serve as a brand鈥檚 inspiration or public face rather than its basis.p. 鈥淢artha is very much wickered in personally with her brand,鈥� O鈥橰ourke said.p. Following her indictment, Stewart stepped down as chief executive and chairwoman of her company.p. Since then, Martha Stewart Living Omnimedia announced plans to launch the new magazine 鈥淓veryday Food.鈥漰. 鈥淚s the lifeboat 鈥楨veryday鈥�?鈥� O鈥橰ourke mused. “It was Martha Stewart that gave it the panache. Will 鈥楨veryday鈥� work?p. 鈥淲e鈥檒l have to wait and see.鈥漰. Staff writer Ashley McCall:
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p. p. July 10,2003
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