CNN Money reports:
Among the limitations placed by Judge Miriam Goldman Cederbaum [on Martha Stewart's defense team] were the inability to say that the home decorating expert was being prosecuted for proclaiming her innocence in the case or for asserting her First Amendment right to free speech.
The defense also is barred from saying that the securities fraud charge Stewart faces is a novel application of securities laws, and from making statements that would tend to show the government's motives in investigating or prosecuting Stewart were improper. The defense also can't say that the fact Stewart and former broker Peter Bacanovic aren't facing criminal insider trading charges means the government doesn't believe they committed such a crime.
In other words, Martha's defense lawyers will not be allowed to tell the jury the
truth.
The government did not indict Martha for insider trading, because the Justice department didn't think they could get a conviction on such a novel theory.
The securities fraud claim against Martha is a novel - and, IMHO, unsupportable - extension of the securities laws. It's an Orwellian ruling that significantly undermines the defense.
