Freeze Frame: How Martha Stewart rebuilt her empire after being sent to prison over an insider trading scandal

Martha Stewart has worn many hats in her time in the spotlight: lifestyle guru, model, talk show host and cookbook author.

The most fascinating hat Stewart, 81, has worn during her storied career in the spotlight, however, is that of a convicted criminal.

Fans of the icon might have forgotten she was sensationally jailed in 2004 following a celebrity trial that rivals Gwyneth Paltrow and Johnny Depp’s time in court.

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Martha Stewart pictured after her sentencing hearing in 2004. (Getty)

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In 1999, Stewart was at the height of her career in her early 60s when she became known as America’s first “self-made billionaire women”.

But one of the ways Stewart made those billions would soon land her in a federal prison.

According to the Securities and Exchange Commission (SEC) in the US, she sold 4000 shares of stock in a company based on insider information allegedly passed on from her broker.

The stock soon plummeted and investigators turned their attention to the famous TV personality and homemaker. It was 2001 and the case against Stewart had officially begun.

A look at the life and career of Martha Stewart

Initial charges of securities fraud were thrown out, however Stewart was later found guilty on four charges of obstruction of justice and lying to investigators.

At the time, the press feverishly speculated over whether Stewart, then aged 62, would actually land jail time for her crimes. She faced a maximum sentence of 16 months.

In 2004, following a media frenzy and a six-week jury trial, she was convicted on the felony charges and sentenced to five months behind bars.

NEW YORK - JULY 16:  Martha Stewart speaks to the media outside Federal Court after her sentencing hearing July 16, 2004 in New York City. Stewart was sentenced to five months in federal prison, 2 years probation and 30,000 dollars in fines. (Photo by Mario Tama/Getty Images)
Stewart speaks to the media outside Federal Court after her sentencing hearing on July 16, 2004. (Getty)

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She was also hit with two years of supervised release and ordered to pay a fine of  $30,000 (approx. $45,000).

According to the New York Times, Stewart was resilient after facing the long arm of the law.

”I’ll be back. I will be back. I’m used to all kinds of hard work, as you know, and I’m not afraid,” she told the publication before her sentencing.

“I’m not afraid whatsoever.”

Stewart was not short of dedicated fans and supporters as she faced court to hear her punishment.

Judge Miriam Goldman Cedarbaum noted the culinary queen had received more than 1500 letters written on her behalf.

”[It is] apparent that you have helped many people outside of your own family and that you have a supportive family and hundreds of admirers.” Judge Cedarbaum said. 

”I believe that you have suffered, and will continue to suffer, enough.”

Martha Stewart appears on NBC News' "Today" show.
The lifestyle guru left prison in 2004 and returned to her empire. (Getty)

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Stewart was to serve her months behind at FCP Alderson, a correctional facility in West Virginia.

The low-security prison was nicknamed in the press as “Camp Cupcake” due to its comparatively luxe facilities. Inmates there are housed in “cottages” and a “reformatory” form of justice is preferred.

During her cushy five-month stay, Stewart took on a role as a liaison between admins and her fellow prisoners.

And though commentators initially predicted her lifestyle empire would crumble as she languished in prison, Stewart actually managed to bounce back stronger than ever.

I’ll be back. I will be back. I’m used to all kinds of hard work, as you know, and I’m not afraid.

After her release from prison in 2005, Stewart embarked on a fierce “comeback campaign” for her brand.

Stewart was seemingly not hamstrung by her home confinement during her post-prison recovery. She was only allowed to leave the house for a total of 48 hours a week, but she managed to return to work almost immediately. 

The same year she was released from prison, she launched her own reality series The Apprentice: Martha Stewart and penned several more cookbooks.

Martha Stewart attends The Comedy Central Roast of Justin Bieber at Sony Pictures Studios on March 14, 2015 in Los Angeles, California.
Stewart pictured with friend and business associate Snoop Dogg. (Getty)

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Stewart also began hosting her popular TV show Martha Stewart Living, was nominated for several Daytime Emmy Awards and sold wildly popular products in department stores across the US.

Though Stewart estimated she lost a staggering US$1 billion (approx. $1.5 billion) during her prison stint, she felt confident she could rebuild her empire.

“Our partners never left us, and our beloved consumers never left us,” Stewart told Oprah in 2010.

“They are the readers of the magazine, the users of our recipes, the wonderful people who buy our products, who look for the good in the brand. And the brand is strong.”

Nearly 20 years have passed since Stewart donned her orange jumpsuit and spent time behind bars.

Her brand has not only survived a federal prison stint – but thrived.

Most new fans of Stewart would know her for now her “thirst trap” selfies, her bizarre friendship with rapper Snoop Dogg and recent Sports Illustrated Swimsuit cover.

But Stewart, of course, says she won’t soon forget her time as a convicted criminal.

“It would be hurtful for anyone to go through that kind of scrutiny,” she told Oprah during her 2010 appearance. “When I look back on it, it all seems so surreal.”

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