Netflix’s Martha: Why did Martha Stewart go to jail?

A Netflix documentary about the life of Martha Stewart has raised some questions that viewers want to know more about, including why the businesswoman spent time in prison.

Netflix Documentary Marthafollows the iconic entrepreneur’s life from teen model to America’s first female self-made billionaire. Dubbed “America’s Most Influential Man,” the show features intimate interviews with Martha and those closest to her, offering a whole new look into her incredible life.

Between her high-profile relationships and the post-breakup heartache that remains with her to this day, Martha’s personal life is as interesting as her incredible business acumen. One aspect of her life that has captivated viewers is the real reason Martha Stewart spent time in prison—read on to find out everything you need to know.

Why did Martha Stewart go to prison?

In March 2004, after a six-week trial, Martha Stewart was found guilty of conspiracy, obstruction and two counts of making false statements, according to NBC News.

In June 2003, the US Securities and Exchange Commission filed a lawsuit against Martha and her broker Peter Bacanovic. The Securities and Exchange Commission (SEC) said that two years earlier, Martha had engaged in illegal insider trading by selling her shares in the biopharmaceutical company ImClone.

The lawsuit still alleged that Bacanovic advised Marta to sell her shares when ImClone CEO Sam Waksal and his daughter Aliza began selling their own shares, and that their decision was not made public. This was taken as a sign that the Waksals knew the company’s share price was about to fall. By selling $228,000 worth of her shares, Martha is believed to have avoided a loss of $45,000.

Having warned Martha about the sale of Vaxals, Today alleges that Bacanovic violated his employer’s insider trading policies and the Insider Trading and Securities Fraud Act of 1988. The complaint filed against Marta also alleged that she lied to authorities and she and Bacanovic tried to cover up what they had done.

The SEC’s complaint also alleged that Stewart tampered with evidence by altering the contents of an incriminating message regarding her possible insider trading of ImClone. Both Marta and Bacanovic pleaded not guilty to the charges, and Marta did not testify at the trial. Bacanovic was found guilty of obstruction, perjury, conspiracy and perjury, but was found not guilty of falsifying a document.

In September 2004, Marta was sentenced to five months in federal prison at Camp Alderson in West Virginia—Bacanovic was also sentenced to five months in prison. Marta arrived to serve her sentence in October 2004 and was released in March 2005.

Per TodayMartha said of her time in prison: “The trial and actual imprisonment lasted less than two years of an 83-year life. To be honest, I considered it a vacation.”