(Reuters)
NEW YORK -- Celebrity homemaker Martha Stewart was sentenced on Friday to five months in prison and five months of house arrest, the lightest term allowed by law, for lying about a stock sale -- and vowed to make a comeback.
Her former stockbroker, Peter Bacanovic, drew the same term for conspiring with her.
Speaking in a shaking voice before the sentencing, Stewart made a brief plea for leniency to U.S. District Judge Miriam Goldman Cedarbaum, who could have given the 62-year-old businesswoman 16 months behind bars.
The judge recommended a minimum security federal prison in Connecticut, not far from one of Stewart's posh homes, and ordered two years' of supervised release and a $30,000 fine. But Stewart does not have to surrender until an appeal is decided.
"Today is a shameful day," said Stewart, who built a catering company into a media and merchandise empire of lifestyle magazines, cookbooks and television shows. "I ask that in judging me, you remember all the good I've done."
Clad in a dark pantsuit, Stewart looked upset as the judge read the sentence but quickly regained her composure and kissed her daughter and her sister. She told reporters in the courtroom she was not surprised "at all" by the sentence.
The judge said she chose the minimum sentence because Stewart had no criminal record and she believed the defendant had "suffered and will continue to suffer enough."
"The sentence I have just imposed is, in my opinion, the minimum permitted under current law," the judge said. "I have not lost sight of the seriousness of the offense of which you have been convicted. Lying to government agencies during the course of an investigation is a very serious matter."
Outside, Stewart declared she would make a comeback.
"I'll be back. Whatever I have to do in the next few months, I hope the months go by quickly," she said. "I'm used to all kinds of hard work, as you know, and I'm not afraid."
She called the case "a small personal matter" that was blown out of proportion with "venom."
Stewart was found guilty in March of conspiracy, making false statements and obstruction of agency proceedings -- all stemming from her suspicious sale of stock in biotech company ImClone Systems Inc. (IMCL) on Dec. 27, 2001.
Prosecutors said the sale occurred after Bacanovic ordered an assistant to tip Stewart that ImClone founder Sam Waksal was dumping all his shares, knowing federal regulators were about to give a thumbs down to the company's anti-cancer drug.
Bacanovic, 41, was convicted of conspiracy, making false statements, perjury and obstruction of justice. Cedarbaum sentenced him to five months in prison, five months of house arrest, two years' supervised release and a $4,000 fine. He too does not have to surrender pending appeal.
While there was no case made for insider trading, prosecutors said she and her broker lied to cover up the tip.
The ensuing debacle wiped off $400 million in market capitalization, or nearly half, in Martha Stewart Living Omnimedia (MSO), the company she founded.
But news of the sentence sent Martha Stewart shares up $2.95 at $11.59 in late trade on the New York Stock Exchange. Earlier they hit $12.00, the highest since her conviction.
"People like her, and they're happy she won't spend too much time in prison," said management consultant Peter Cohan.
Indeed, Stewart was greeted outside by supporters like Pat Turner, a Georgia resident who planned a trip to New York to coincide with the sentencing.
"I think she'll take this and turn it into a positive, hold her head high," Turner said. "I think she'll come back and be bigger and better because that's the kind of person she is."
Stewart has enjoyed remarkable support from fans, especially compared with more reviled white-collar criminals who are seen evading justice through wealth and influence.
The judge said she received more than 1,500 letters from Stewart supporters, who also set up fan clubs and Web sites and even petitioned President Bush to step in.
Stewart asked to serve house arrest in her home in suburban Bedford, New York, where she would wear a monitoring device.
NEW YORK -- Celebrity homemaker Martha Stewart was sentenced on Friday to five months in prison and five months of house arrest, the lightest term allowed by law, for lying about a stock sale -- and vowed to make a comeback.
Her former stockbroker, Peter Bacanovic, drew the same term for conspiring with her.
Speaking in a shaking voice before the sentencing, Stewart made a brief plea for leniency to U.S. District Judge Miriam Goldman Cedarbaum, who could have given the 62-year-old businesswoman 16 months behind bars.
The judge recommended a minimum security federal prison in Connecticut, not far from one of Stewart's posh homes, and ordered two years' of supervised release and a $30,000 fine. But Stewart does not have to surrender until an appeal is decided.
"Today is a shameful day," said Stewart, who built a catering company into a media and merchandise empire of lifestyle magazines, cookbooks and television shows. "I ask that in judging me, you remember all the good I've done."
Clad in a dark pantsuit, Stewart looked upset as the judge read the sentence but quickly regained her composure and kissed her daughter and her sister. She told reporters in the courtroom she was not surprised "at all" by the sentence.
The judge said she chose the minimum sentence because Stewart had no criminal record and she believed the defendant had "suffered and will continue to suffer enough."
"The sentence I have just imposed is, in my opinion, the minimum permitted under current law," the judge said. "I have not lost sight of the seriousness of the offense of which you have been convicted. Lying to government agencies during the course of an investigation is a very serious matter."
Outside, Stewart declared she would make a comeback.
"I'll be back. Whatever I have to do in the next few months, I hope the months go by quickly," she said. "I'm used to all kinds of hard work, as you know, and I'm not afraid."
She called the case "a small personal matter" that was blown out of proportion with "venom."
Stewart was found guilty in March of conspiracy, making false statements and obstruction of agency proceedings -- all stemming from her suspicious sale of stock in biotech company ImClone Systems Inc. (IMCL) on Dec. 27, 2001.
Prosecutors said the sale occurred after Bacanovic ordered an assistant to tip Stewart that ImClone founder Sam Waksal was dumping all his shares, knowing federal regulators were about to give a thumbs down to the company's anti-cancer drug.
Bacanovic, 41, was convicted of conspiracy, making false statements, perjury and obstruction of justice. Cedarbaum sentenced him to five months in prison, five months of house arrest, two years' supervised release and a $4,000 fine. He too does not have to surrender pending appeal.
While there was no case made for insider trading, prosecutors said she and her broker lied to cover up the tip.
The ensuing debacle wiped off $400 million in market capitalization, or nearly half, in Martha Stewart Living Omnimedia (MSO), the company she founded.
But news of the sentence sent Martha Stewart shares up $2.95 at $11.59 in late trade on the New York Stock Exchange. Earlier they hit $12.00, the highest since her conviction.
"People like her, and they're happy she won't spend too much time in prison," said management consultant Peter Cohan.
Indeed, Stewart was greeted outside by supporters like Pat Turner, a Georgia resident who planned a trip to New York to coincide with the sentencing.
"I think she'll take this and turn it into a positive, hold her head high," Turner said. "I think she'll come back and be bigger and better because that's the kind of person she is."
Stewart has enjoyed remarkable support from fans, especially compared with more reviled white-collar criminals who are seen evading justice through wealth and influence.
The judge said she received more than 1,500 letters from Stewart supporters, who also set up fan clubs and Web sites and even petitioned President Bush to step in.
Stewart asked to serve house arrest in her home in suburban Bedford, New York, where she would wear a monitoring device.
