Chapter 8. Star Witness: "Baby" Testifies

To prove its case against Martha Stewart, the government needed someone to testify to all that had happened on December 27, 2001, someone who was in a position to know what Martha Stewart had done on that fateful day.

The government needed to show that Stewart had lied to the federal authorities and then engaged in a cover up to conceal the reason she took the controversial stock tip.

Stewart insisted that she and Peter Bacanovic, her stockbroker, had agreed that she would sell her ImClone shares if and when the stock dropped to $60 a share. That was the lie, the government argued, because there had been no agreement.

Instead what had happened was this: Stewart sold her stock after being given a tip ...

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