Martha Stewart and insider trading

By the mid-1990s, Martha Stewart was a popular television personality, a successful businesswoman, and had become very wealthy. This trend continued into the new millennium until she was accused of insider trading. She was ultimately convicted of making false statements to the federal government, obstruction of justice, and conspiracy to make false statements and obstruct justice.

She was sentenced to 5 months in prison and 5 months of home detention, fined $30,000, and ordered 19 months of supervised release following confinement. Although Stewart was freed on bail pending appeal, she decided to serve her prison sentence. On October 8, 2004, she reported to Alderson Federal Prison Camp in West Virginia to begin serving her sentence. . To many observers, her questionable behavior made little sense because she seemed to have a great deal to lose if convicted.

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To learn more about Martha Stewart’s case, visit the following Web links:
http://digitalcommons.liberty.edu/cgi/viewcontent.cgi?article=1002&context=busi_fac_pubs
http://www.washingtonpost.com/wp-dyn/articles/A56199-2004Jul16.html
http://salempress.com/store/samples/great_events_from_history_scandals/gefh_scandals_martha.htm

Brainstorm the Stewart case and answer the following questions:
– Can differential association theory be used to explain Stewart’s criminal behavior? Why or why not?
– Can anomie or the different variants of strain theory be used to explain Stewart’s criminal behavior? Why or why not?
– Can other sociological theories, such as focal concern, differential opportunity, and subculture theories, potentially explain Stewart’s behavior? How?
– Can some white-collar crimes be more appropriately explained through sociological theories of crime? If yes, what types and how? If no, why? Solution Preview
Brainstorm the Stewart case and answer the following questions:
– Can differential association theory be used to explain Stewart’s criminal behavior? Why or why not?

Differential association does apply to the Martha Stewart case because of the fact that Stewart was able to engage in “insider trading” as a result of the non-effective constraints that were in place to prevent this behavior. If Stewart and her conspirator would have been subjected to the appropriate constraints, she could have been prevented from engaging in insider trading. The reason that differential association theory is appropriate is because it doesn’t …

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