Martha Stewart: Can Her Credibility Be Saved?

During the third week of stinging testimony by government witnesses, the Martha Stewart case reached a dramatic high point with the emotional testimony of her longtime secretary, Ann Armstrong. The feds accuse Stewart of conspiring with her stockbroker (and co-defendant) Peter Bacanovic to conceal her dumping of ImClone Systems stock in December 2001 after getting an inside tip. Her secretary burst into sobs before recounting how Stewart doctored a phone message from Bacanovic that Armstrong had taken--implying an attempted cover-up. According to the government, Stewart lied when she later denied knowledge of the phone-log entries in an interview with federal investigators...

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