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Martha Stewart Sentenced to Five Months Prison, Two Months Probation
Aired July 16, 2004 - 11:30 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DARYN KAGAN, CNN ANCHOR: Perhaps you're just joining us here at the half-hour. The news -- the breaking news, Martha Stewart has been sentenced to prison. The full sentence: five months in prison, five months of house arrest, a $30,000 fine and two years of supervised probation.
These pictures were just taken a little while ago of Martha Stewart coming out of the courthouse. As she did, she made a defiant statement and apologized, not for her actions, but for what this has meant to many people in her company. And she also showed the support of her fans, saying that she appreciated that as well.
Our Allan Chernoff was in the courtroom when the sentence was handed down and has more on Martha Stewart's reaction -- Allan.
ALLAN CHERNOFF, CNN FINANCIAL NEWS REPORTER: Daryn, Martha Stewart did not show a tremendous amount of reaction when the sentence was actually read. But at the end of the entire proceeding, she did turn around, kissed her daughter, Alexis, and appeared to show a little bit of relief.
The most drama that we saw in the courtroom came when Martha Stewart herself stood up and spoke from a prepared text. She said, consider all the good that I've done. She asked the judge to talk -- to consider all the contributions that I've made. Martha Stewart said, I want to continue serving my country. She also said that she does not want to have her life destroyed.
And the judge, Miriam Cedarbaum, seemed to show some sympathy for Martha Stewart. She said, I am sentencing you to the bottom of the guidelines, the lowest end of the federal sentencing guidelines. She then announced the sentence.
The judge also said that she feels Martha Stewart has already suffered and will continue to suffer. And the judge referred to the more than 1,500 letters that have been written to the court on Martha Stewart's behalf. The judge said clearly you have helped many people. And she said that she had read each and every of those letters.
So, Daryn, a tremendous amount of drama in the court this morning.
KAGAN: And that's not the only place that drama is taking place. Allan, thank you for that.
We want to check about the drama around Martha Stewart's company. And for that, let's check in with Rhonda Schaffler on the floor of the New York Stock Exchange -- Rhonda.
RHONDA SCHAFFLER, CNN CORRESPONDENT: Daryn, it's interesting. We're just calculating the very latest changes with Martha Stewart's stock here. At this point, it's up about $1.95, at 10.59.
This stock has been on a run all morning long since the announcement came down about her sentencing. At one point, the stock actually traded up better than 35 percent. That is a huge move for an individual stock in a trading day.
Keep in mind, too, that this means Martha Stewart has made money, along with some other investors. She owns a 60-percent stake -- that's all right -- in the company. And so that means the money she made today in theory would be more than the fine she has to pay in the case.
So, we'll keep watching this stock for you closely. It's not on its highs of the day, but still a significant jump.
(NEWS BUSINESS UPDATE)
KAGAN: Rhonda Schaffler, clearly live on the floor of the New York Stock Exchange. Thanks for taking a hit for the team. Stay tough, friend. Very good.
Well, Martha Stewart insists she is staying tough. Incredible today not just that her sentence was handed down, but this was the first time we have heard from Martha Stewart throughout this entire courtroom ordeal. She spoke before the judge. And then she came out and spoke to people around the world.
In case you missed it, this is what Martha Stewart head to say:
(BEGIN VIDEO CLIP)
MARTHA STEWART, DEFENDANT: Today is a shameful day. It's shameful for me and for my family and for my beloved company and for all of its employees and partners. What was a small, personal matter came over -- became over the last two years an almost fatal circus event of unprecedented proportions.
I have been choked and almost suffocated to death during that time, all the while more concerned about the well-being of others than for myself. More hurt for them and for their losses than for my own. More worried for their futures than the future of Martha Stewart, the person.
More than 200 people have lost their jobs at my company, as a result of this situation. I want them to know how very, very sorry I am for them and their families.
I would like to thank everybody who stood by me, who wished me well, waved to me on the street, like these lovely people over here, smiled at me, called me, wrote to me. We received thousands of support letters and more than 170,000 e-mails to MarthaTalks.com. And I appreciate each and every one of those pieces of correspondence. I really feel good about it.
Perhaps all of you out there can continue to show your support by subscribing to our magazine, by buying our products, by encouraging our advertisers to come back in full force to our magazines. Our magazines are great. They deserve your support.
And whatever happens to me personally shouldn't have any effect whatsoever on the great company, Martha Stewart Living Omnimedia. And I don't want to use this as a sales pitch for my company, but we love that company. We have worked so hard on that company. And we really think it merits great attention from the American public.
And I'll be back. I will be back. Whatever I have to do in the next few months, I hope the months go by quickly. I am used to all kinds of hard work, as you know, and I am not afraid. I am not afraid whatsoever. I am just very, very sorry that it's come to this; that a small, personal matter has been able to be blown out of all proportion and with such venom and such gore. I mean, it's just terrible.
(END VIDEO CLIP)
KAGAN: And Martha Stewart will be back as early as Monday night. She has granted her first and only live exclusive interview to our Larry King. That will be 9:00 p.m. Eastern, 6:00 p.m. Pacific.
We have a lot more news to cover, and we're going to do that after this.
(COMMERCIAL BREAK)
KAGAN: We will have much more ahead on Martha Stewart. Her broker -- her former broker, Peter Bacanovic, has yet to be sentenced. That will take place in about three hours. So, much more on that whole story in a moment.
First, though, there is other news taking place today, including political news. The campaign season has hit full stride. All of the majors are on the road today, including one of our majors, Bob Franken. Well, actually I guess he's home in Washington, D.C.
BOB FRANKEN, CNN NATIONAL CORRESPONDENT: Well, CNN has learned that Martha Stewart will not be on the presidential campaign trail today, but just about everybody else will.
KAGAN: This just in.
FRANKEN: President Bush, Vice President Cheney and Senators Kerry and Edwards all will be campaigning today.
First, President Bush. He talked policy this morning at a Justice Department conference in Tampa on human trafficking. Later, the president will attend a re-election rally in yet another showdown state, West Virginia.
Vice President Cheney will have some interesting company when he campaigns in Michigan this afternoon: Arizona Senator John McCain mentioned by some as a possible Cheney replacement on the GOP ticket. Today, he'll be sharing the podium at a campaign rally in Lansing.
Democratic challenger John Kerry takes his message today to the nation's educators. In an afternoon speech to the American Federation of Teachers, Kerry is expected to renew a vow to put as much funding into education reform as the law allows. He's also expected to pick up the AFT's endorsement.
Kerry's running mate, John Edwards, will attend an evening reception and address the Southwest Voter Registration Education Project in Los Angeles. Last night in Houston, Edwards went one-on- one with CNN's Kelly Wallace and talked about the Kerry/Edwards ticket.
(BEGIN VIDEO CLIP)
SEN. JOHN EDWARDS (D-NC), VICE PRESIDENTIAL CANDIDATE: First of all -- first of all, I am completely loyal to John Kerry. Period. And that includes now. It includes in the future. And I am 110 percent about Elizabeth and I -- my wife and I both about making sure he's the next president.
KELLY WALLACE, CNN NATIONAL CORRESPONDENT: So, it sounds like that means future.
EDWARDS: I am loyal to John Kerry 100 percent.
(END VIDEO CLIP)
FRANKEN: Senator Hillary Rodham Clinton has been given a prime- time role on opening night of the Democratic Convention, introducing her husband, the former president. Senator Clinton originally was not on the speakers' list, and said she was not disappointed. But some Democrats, particularly women, were upset. And Senator Kerry called Clinton yesterday and asked her to speak.
And need I tell you that today is Friday and, among other things, that means that Bill Schneider will hand out his political play of the week this afternoon. And this week's award goes to a man who may finally -- many finally believe laid some speculation to rest.
Plus, the battle rages on in the Buckeye State. We'll take a look at Ohio, the state that could spell victory in the presidential race this November. All of this and more when Judy Woodruff goes "INSIDE POLITICS" at 3:30 Eastern.
But now we go back inside Atlanta and Daryn Kagan.
KAGAN: And the entire world from CNN global world headquarters. Bob Franken, thank you so much with the latest from D.C. and from the campaign trail.
A lot more ahead on Martha Stewart. Apparently -- and you heard her make reference to this -- a big part of her battle was fought online. We'll bring in Regina Lewis to tell us more about that.
Right now, a break. We're back after this. (COMMERCIAL BREAK)
KAGAN: Martha Stewart and her attorneys say they will appeal her prison sentence. Once again, five months in prison, five months' house arrest, a $30,000 fine and two years of supervised probation.
A very defiant Martha Stewart appeared both inside the courtroom and then outside the courthouse after this was all taking place. And she talked about a lot of the support that she has had, that she is grateful for that.
Let's bring in our Regina Lewis from AOL, who is talking about a lot of that support was expressed online and the online factor of Martha Stewart's fight.
Regina -- hello.
REGINA LEWIS, AOL: Hi, Daryn.
Absolutely. MarthaTalks.com has been a big part of the story from the very beginning, because that's where Martha and her attorneys have absolute control. They control the dialogue. They post the print stories that they like most. They post the letters that they like best.
She thanks right now -- the site has just been updated. There's a statement from her lawyers. And she's thanking people for the more than 170,000 e-mails she's gotten, 60,000 of which have been sent in since the March verdict.
Also you ever heard the judge said that they received 15,000 letters of support and perhaps that was influential in some way. Those letters were largely solicited online, where they went to great lengths to post examples.
There are spin-off sites as well. SaveMartha.com, for instance. At 10:00 a.m., they were asking people for prayers. Right now, they are asking the president for a pardon. And they have 15,000 signatures and counting on that.
We're also running polls on AOL and seeing all kinds of reaction. Very mixed.
KAGAN: All right.
LEWIS: Let me give you some of those poll results.
KAGAN: OK.
LEWIS: They're just coming in now. We've got more than 150,000 votes. When asked, what do you think of the verdict, do you think it was legit, 37 percent said they thought it was too harsh, 35 percent too lenient, 29 percent said fair.
What was more interesting was the follow-up question: Are you a fan or are you not? Because I was struck by that. The 37 percent number saying they thought was pretty harsh. Nearly 60 percent said I'm not a fan, never have been, and they still think that. So, we'll see how this plays out with the appeal.
KAGAN: All right, we will be tracking that. Regina Lewis, thanks for giving us the look online from AOL. I appreciate that.
LEWIS: Sure.
KAGAN: We have with us right now David Chesnoff, describing himself as a friend of Martha Stewart, reacting to the sentence that was handed down today.
David, are you with us?
DAVID CHESNOFF, MARTHA STEWART'S FRIEND: Yes, I am.
KAGAN: Can you give us the reaction, five months in prison, five months' house arrest, a $30,000 fine and two years of supervised probation?
CHESNOFF: Well, more than just being a friend, I will also be involved in the appeal. And as a trial lawyer we think there are some very strong issues that will lead to a reversal of Ms. Stewart's conviction. Obviously, no one enjoys a sentencing of any kind, but we also were interested in the comments of the court as they impact the validity of the sentencing guidelines.
So, overall, the fact that she's going to be out on bail pending appeal, giving her a chance to pursue the justice system, which can lead to her vindication, we are very gratified.
KAGAN: Up to this point, given everything that the judge had to take into consideration, she really couldn't have done much different than she did today, could she?
CHESNOFF: No. The judge made that clear, that she gave the lowest possible sentence she felt the law allowed at this time. But, again, the sentencing guidelines are under examination right now by all of the federal courts. And I think she indicated she understood that.
KAGAN: Are you actually with Martha Stewart right now?
CHESNOFF: Well, I walked away in order to talk to you, but I am with her.
KAGAN: OK. And we were able to listen to her, what I think was a rather defiant statement as she came out of the courthouse. She talked about the suffering that she has been through in recent months through this entire ordeal, how she said -- she described it was a personal matter that has been blown up into ridiculous proportions. Could you talk a little bit more about that?
CHESNOFF: Well, I think that because she's a celebrated person, it's even more magnified when you go through the justice system. And she is looking forward to her appeal, and she's most importantly looking forward to getting back to work, because that's what she loves to do. And she's going to do it, and she's going to bring her company back.
KAGAN: What about the idea that this appeals process does not have much chance? The idea of, if you are looking at her business and trying to plan a comeback, you know what? Go do your prison time, get this over with and then get on with your life.
CHESNOFF: Well, I think that's easy for people to say that aren't faced with the prospect of going to prison. But I think Mr. Dellinger, who is the lead counsel on the appeal, is very experienced and brilliant, a constitutional scholar. He believes there is great merit to the appeal, as does Marty Weinberg, another lawyer from Boston, Massachusetts, who is going to be working on it. And there were certain things that occurred during the trial that a trial lawyer and a constitutional lawyer recognized as the basis for a new trial.
KAGAN: And so, what does Martha Stewart do now, no. 1, with the rest of her day, a day I'm sure she will never forget the rest of her life?
CHESNOFF: Well, I think knowing Martha she'll do something that involves her company.
KAGAN: All right. Well, David Chesnoff, attorney and also friend of Martha Stewart, thank you so much for joining us on the phone.
CHESNOFF: Thank you for having me. Bye-bye.
KAGAN: Appreciate that.
We have on camera with us now Dominick Dunne. He needs very little introduction. You know his works and books and "Vanity Fair." He also describes himself as a friend of Martha Stewart and was with her in the courtroom today.
Dominick, thank you for being with us.
DOMINICK DUNNE, WRITER, "VANITY FAIR": Thank you.
KAGAN: What's your reaction to the sentence today?
DUNNE: Well, you know, I expected -- quite honestly, I thought she was going to get 12 to 16 months. So, I was delighted with five months in prison and five months at home. I personally, my own personal reaction is, I think it's outrageous that she's going to prison.
And -- but under the circumstances, I think that Judge Cedarbaum, who is a judge I admired enormously all through this trial, I thought she was very, very fair. And under the sentencing guidelines, she gave her the minimum. And I think she would have been greatly criticized, Judge Cedarbaum, if she had not done so.
And -- but I think that Martha is a very -- not I think -- I know that she is a very, very strong woman. And she will do her five months in the prison, and I'm sure she'll do some good in that prison. And she'll have five months at home. She has a $30,000 fine, which certainly won't be any problem for her. And she'll be under house arrest. She'll have a monitor on her leg. You know, one of those things that tells where you are at all times. And she has 48 hours a week to do things like market and church and so forth and so forth. And the rest of the time she's there. She has several residences. She picked the house in Bedford as the place where she will be. There's going to be a few months, I think, before she actually goes to prison.
KAGAN: Well, there's the appeal that's going to take place, and she has been granted a stay while that takes place.
Now, you have been very open and you have written about your personal friendship with Martha Stewart, how you have had lunch with her during the trial.
DUNNE: Yes.
KAGAN: She talked a lot today in the courthouse and also outside the courthouse about how she has already suffered quite a bit. She hasn't shared that publicly until now. Can you share with us a little bit more of how that's taken place?
DUNNE: Well, yes, I'll tell you, I couldn't hear her outside the courthouse. There were just so many people there, and I just couldn't hear. But I certainly heard her in the courtroom. And I think, from what I understand, it was pretty much the same talk both places.
It was the first time during the whole trial that Martha -- she didn't break down. I don't want you to think that she broke down, but she was deeply affected. Her voice was -- it was like she was holding back tears. There were tears in her voice. And it was very, very moving. And it was very, very -- she was concerned more about the people who worked for her, who would be losing their jobs, and so forth. I think...
KAGAN: Real quickly, Dominick I just want to get one last question in here. You have covered so many celebrity trials. You know this world. You know these people. Where did this go wrong for Martha Stewart that she now will most probably be going off to prison?
DUNNE: Well, I mean, I think she was -- there was a side of herself that came out today when she made that statement and after the statement when she turned and kissed her daughter, which was just enormously moving and motherly. And I think if a little bit more of that side of her had come out during the trial, it would have benefited her.
The jury seemed to take a dislike to her, and -- because she never showed any emotion. And that's typical of her. I mean, she's a -- you know, she's lived by this thing of being a strong, strong woman. And today she released some of that. Some of the -- it was very moving today. She was very moving. KAGAN: She showed the strength as well when she said out on the courthouse steps, she will be back. Dominick Dunne, thank you for your time.
DUNNE: OK.
KAGAN: It's always fascinating to hear and to read your insights.
Dominick Dunne will be a guest of Larry King later tonight; also David Chesnoff, who I just had a chance to talk to, one of the attorneys and friends of Martha Stewart. So, a lot more with Larry King and throughout our coverage today and tonight. And Martha Stewart, of course, will be a guest of Larry on Monday at 9:00 p.m. Eastern.
That's going to do it for me, Daryn Kagan wraps up the week. I'll be right back here Monday morning.
Wolf Blitzer takes over at the top of the hour.
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Aired July 16, 2004 - 11:30 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DARYN KAGAN, CNN ANCHOR: Perhaps you're just joining us here at the half-hour. The news -- the breaking news, Martha Stewart has been sentenced to prison. The full sentence: five months in prison, five months of house arrest, a $30,000 fine and two years of supervised probation.
These pictures were just taken a little while ago of Martha Stewart coming out of the courthouse. As she did, she made a defiant statement and apologized, not for her actions, but for what this has meant to many people in her company. And she also showed the support of her fans, saying that she appreciated that as well.
Our Allan Chernoff was in the courtroom when the sentence was handed down and has more on Martha Stewart's reaction -- Allan.
ALLAN CHERNOFF, CNN FINANCIAL NEWS REPORTER: Daryn, Martha Stewart did not show a tremendous amount of reaction when the sentence was actually read. But at the end of the entire proceeding, she did turn around, kissed her daughter, Alexis, and appeared to show a little bit of relief.
The most drama that we saw in the courtroom came when Martha Stewart herself stood up and spoke from a prepared text. She said, consider all the good that I've done. She asked the judge to talk -- to consider all the contributions that I've made. Martha Stewart said, I want to continue serving my country. She also said that she does not want to have her life destroyed.
And the judge, Miriam Cedarbaum, seemed to show some sympathy for Martha Stewart. She said, I am sentencing you to the bottom of the guidelines, the lowest end of the federal sentencing guidelines. She then announced the sentence.
The judge also said that she feels Martha Stewart has already suffered and will continue to suffer. And the judge referred to the more than 1,500 letters that have been written to the court on Martha Stewart's behalf. The judge said clearly you have helped many people. And she said that she had read each and every of those letters.
So, Daryn, a tremendous amount of drama in the court this morning.
KAGAN: And that's not the only place that drama is taking place. Allan, thank you for that.
We want to check about the drama around Martha Stewart's company. And for that, let's check in with Rhonda Schaffler on the floor of the New York Stock Exchange -- Rhonda.
RHONDA SCHAFFLER, CNN CORRESPONDENT: Daryn, it's interesting. We're just calculating the very latest changes with Martha Stewart's stock here. At this point, it's up about $1.95, at 10.59.
This stock has been on a run all morning long since the announcement came down about her sentencing. At one point, the stock actually traded up better than 35 percent. That is a huge move for an individual stock in a trading day.
Keep in mind, too, that this means Martha Stewart has made money, along with some other investors. She owns a 60-percent stake -- that's all right -- in the company. And so that means the money she made today in theory would be more than the fine she has to pay in the case.
So, we'll keep watching this stock for you closely. It's not on its highs of the day, but still a significant jump.
(NEWS BUSINESS UPDATE)
KAGAN: Rhonda Schaffler, clearly live on the floor of the New York Stock Exchange. Thanks for taking a hit for the team. Stay tough, friend. Very good.
Well, Martha Stewart insists she is staying tough. Incredible today not just that her sentence was handed down, but this was the first time we have heard from Martha Stewart throughout this entire courtroom ordeal. She spoke before the judge. And then she came out and spoke to people around the world.
In case you missed it, this is what Martha Stewart head to say:
(BEGIN VIDEO CLIP)
MARTHA STEWART, DEFENDANT: Today is a shameful day. It's shameful for me and for my family and for my beloved company and for all of its employees and partners. What was a small, personal matter came over -- became over the last two years an almost fatal circus event of unprecedented proportions.
I have been choked and almost suffocated to death during that time, all the while more concerned about the well-being of others than for myself. More hurt for them and for their losses than for my own. More worried for their futures than the future of Martha Stewart, the person.
More than 200 people have lost their jobs at my company, as a result of this situation. I want them to know how very, very sorry I am for them and their families.
I would like to thank everybody who stood by me, who wished me well, waved to me on the street, like these lovely people over here, smiled at me, called me, wrote to me. We received thousands of support letters and more than 170,000 e-mails to MarthaTalks.com. And I appreciate each and every one of those pieces of correspondence. I really feel good about it.
Perhaps all of you out there can continue to show your support by subscribing to our magazine, by buying our products, by encouraging our advertisers to come back in full force to our magazines. Our magazines are great. They deserve your support.
And whatever happens to me personally shouldn't have any effect whatsoever on the great company, Martha Stewart Living Omnimedia. And I don't want to use this as a sales pitch for my company, but we love that company. We have worked so hard on that company. And we really think it merits great attention from the American public.
And I'll be back. I will be back. Whatever I have to do in the next few months, I hope the months go by quickly. I am used to all kinds of hard work, as you know, and I am not afraid. I am not afraid whatsoever. I am just very, very sorry that it's come to this; that a small, personal matter has been able to be blown out of all proportion and with such venom and such gore. I mean, it's just terrible.
(END VIDEO CLIP)
KAGAN: And Martha Stewart will be back as early as Monday night. She has granted her first and only live exclusive interview to our Larry King. That will be 9:00 p.m. Eastern, 6:00 p.m. Pacific.
We have a lot more news to cover, and we're going to do that after this.
(COMMERCIAL BREAK)
KAGAN: We will have much more ahead on Martha Stewart. Her broker -- her former broker, Peter Bacanovic, has yet to be sentenced. That will take place in about three hours. So, much more on that whole story in a moment.
First, though, there is other news taking place today, including political news. The campaign season has hit full stride. All of the majors are on the road today, including one of our majors, Bob Franken. Well, actually I guess he's home in Washington, D.C.
BOB FRANKEN, CNN NATIONAL CORRESPONDENT: Well, CNN has learned that Martha Stewart will not be on the presidential campaign trail today, but just about everybody else will.
KAGAN: This just in.
FRANKEN: President Bush, Vice President Cheney and Senators Kerry and Edwards all will be campaigning today.
First, President Bush. He talked policy this morning at a Justice Department conference in Tampa on human trafficking. Later, the president will attend a re-election rally in yet another showdown state, West Virginia.
Vice President Cheney will have some interesting company when he campaigns in Michigan this afternoon: Arizona Senator John McCain mentioned by some as a possible Cheney replacement on the GOP ticket. Today, he'll be sharing the podium at a campaign rally in Lansing.
Democratic challenger John Kerry takes his message today to the nation's educators. In an afternoon speech to the American Federation of Teachers, Kerry is expected to renew a vow to put as much funding into education reform as the law allows. He's also expected to pick up the AFT's endorsement.
Kerry's running mate, John Edwards, will attend an evening reception and address the Southwest Voter Registration Education Project in Los Angeles. Last night in Houston, Edwards went one-on- one with CNN's Kelly Wallace and talked about the Kerry/Edwards ticket.
(BEGIN VIDEO CLIP)
SEN. JOHN EDWARDS (D-NC), VICE PRESIDENTIAL CANDIDATE: First of all -- first of all, I am completely loyal to John Kerry. Period. And that includes now. It includes in the future. And I am 110 percent about Elizabeth and I -- my wife and I both about making sure he's the next president.
KELLY WALLACE, CNN NATIONAL CORRESPONDENT: So, it sounds like that means future.
EDWARDS: I am loyal to John Kerry 100 percent.
(END VIDEO CLIP)
FRANKEN: Senator Hillary Rodham Clinton has been given a prime- time role on opening night of the Democratic Convention, introducing her husband, the former president. Senator Clinton originally was not on the speakers' list, and said she was not disappointed. But some Democrats, particularly women, were upset. And Senator Kerry called Clinton yesterday and asked her to speak.
And need I tell you that today is Friday and, among other things, that means that Bill Schneider will hand out his political play of the week this afternoon. And this week's award goes to a man who may finally -- many finally believe laid some speculation to rest.
Plus, the battle rages on in the Buckeye State. We'll take a look at Ohio, the state that could spell victory in the presidential race this November. All of this and more when Judy Woodruff goes "INSIDE POLITICS" at 3:30 Eastern.
But now we go back inside Atlanta and Daryn Kagan.
KAGAN: And the entire world from CNN global world headquarters. Bob Franken, thank you so much with the latest from D.C. and from the campaign trail.
A lot more ahead on Martha Stewart. Apparently -- and you heard her make reference to this -- a big part of her battle was fought online. We'll bring in Regina Lewis to tell us more about that.
Right now, a break. We're back after this. (COMMERCIAL BREAK)
KAGAN: Martha Stewart and her attorneys say they will appeal her prison sentence. Once again, five months in prison, five months' house arrest, a $30,000 fine and two years of supervised probation.
A very defiant Martha Stewart appeared both inside the courtroom and then outside the courthouse after this was all taking place. And she talked about a lot of the support that she has had, that she is grateful for that.
Let's bring in our Regina Lewis from AOL, who is talking about a lot of that support was expressed online and the online factor of Martha Stewart's fight.
Regina -- hello.
REGINA LEWIS, AOL: Hi, Daryn.
Absolutely. MarthaTalks.com has been a big part of the story from the very beginning, because that's where Martha and her attorneys have absolute control. They control the dialogue. They post the print stories that they like most. They post the letters that they like best.
She thanks right now -- the site has just been updated. There's a statement from her lawyers. And she's thanking people for the more than 170,000 e-mails she's gotten, 60,000 of which have been sent in since the March verdict.
Also you ever heard the judge said that they received 15,000 letters of support and perhaps that was influential in some way. Those letters were largely solicited online, where they went to great lengths to post examples.
There are spin-off sites as well. SaveMartha.com, for instance. At 10:00 a.m., they were asking people for prayers. Right now, they are asking the president for a pardon. And they have 15,000 signatures and counting on that.
We're also running polls on AOL and seeing all kinds of reaction. Very mixed.
KAGAN: All right.
LEWIS: Let me give you some of those poll results.
KAGAN: OK.
LEWIS: They're just coming in now. We've got more than 150,000 votes. When asked, what do you think of the verdict, do you think it was legit, 37 percent said they thought it was too harsh, 35 percent too lenient, 29 percent said fair.
What was more interesting was the follow-up question: Are you a fan or are you not? Because I was struck by that. The 37 percent number saying they thought was pretty harsh. Nearly 60 percent said I'm not a fan, never have been, and they still think that. So, we'll see how this plays out with the appeal.
KAGAN: All right, we will be tracking that. Regina Lewis, thanks for giving us the look online from AOL. I appreciate that.
LEWIS: Sure.
KAGAN: We have with us right now David Chesnoff, describing himself as a friend of Martha Stewart, reacting to the sentence that was handed down today.
David, are you with us?
DAVID CHESNOFF, MARTHA STEWART'S FRIEND: Yes, I am.
KAGAN: Can you give us the reaction, five months in prison, five months' house arrest, a $30,000 fine and two years of supervised probation?
CHESNOFF: Well, more than just being a friend, I will also be involved in the appeal. And as a trial lawyer we think there are some very strong issues that will lead to a reversal of Ms. Stewart's conviction. Obviously, no one enjoys a sentencing of any kind, but we also were interested in the comments of the court as they impact the validity of the sentencing guidelines.
So, overall, the fact that she's going to be out on bail pending appeal, giving her a chance to pursue the justice system, which can lead to her vindication, we are very gratified.
KAGAN: Up to this point, given everything that the judge had to take into consideration, she really couldn't have done much different than she did today, could she?
CHESNOFF: No. The judge made that clear, that she gave the lowest possible sentence she felt the law allowed at this time. But, again, the sentencing guidelines are under examination right now by all of the federal courts. And I think she indicated she understood that.
KAGAN: Are you actually with Martha Stewart right now?
CHESNOFF: Well, I walked away in order to talk to you, but I am with her.
KAGAN: OK. And we were able to listen to her, what I think was a rather defiant statement as she came out of the courthouse. She talked about the suffering that she has been through in recent months through this entire ordeal, how she said -- she described it was a personal matter that has been blown up into ridiculous proportions. Could you talk a little bit more about that?
CHESNOFF: Well, I think that because she's a celebrated person, it's even more magnified when you go through the justice system. And she is looking forward to her appeal, and she's most importantly looking forward to getting back to work, because that's what she loves to do. And she's going to do it, and she's going to bring her company back.
KAGAN: What about the idea that this appeals process does not have much chance? The idea of, if you are looking at her business and trying to plan a comeback, you know what? Go do your prison time, get this over with and then get on with your life.
CHESNOFF: Well, I think that's easy for people to say that aren't faced with the prospect of going to prison. But I think Mr. Dellinger, who is the lead counsel on the appeal, is very experienced and brilliant, a constitutional scholar. He believes there is great merit to the appeal, as does Marty Weinberg, another lawyer from Boston, Massachusetts, who is going to be working on it. And there were certain things that occurred during the trial that a trial lawyer and a constitutional lawyer recognized as the basis for a new trial.
KAGAN: And so, what does Martha Stewart do now, no. 1, with the rest of her day, a day I'm sure she will never forget the rest of her life?
CHESNOFF: Well, I think knowing Martha she'll do something that involves her company.
KAGAN: All right. Well, David Chesnoff, attorney and also friend of Martha Stewart, thank you so much for joining us on the phone.
CHESNOFF: Thank you for having me. Bye-bye.
KAGAN: Appreciate that.
We have on camera with us now Dominick Dunne. He needs very little introduction. You know his works and books and "Vanity Fair." He also describes himself as a friend of Martha Stewart and was with her in the courtroom today.
Dominick, thank you for being with us.
DOMINICK DUNNE, WRITER, "VANITY FAIR": Thank you.
KAGAN: What's your reaction to the sentence today?
DUNNE: Well, you know, I expected -- quite honestly, I thought she was going to get 12 to 16 months. So, I was delighted with five months in prison and five months at home. I personally, my own personal reaction is, I think it's outrageous that she's going to prison.
And -- but under the circumstances, I think that Judge Cedarbaum, who is a judge I admired enormously all through this trial, I thought she was very, very fair. And under the sentencing guidelines, she gave her the minimum. And I think she would have been greatly criticized, Judge Cedarbaum, if she had not done so.
And -- but I think that Martha is a very -- not I think -- I know that she is a very, very strong woman. And she will do her five months in the prison, and I'm sure she'll do some good in that prison. And she'll have five months at home. She has a $30,000 fine, which certainly won't be any problem for her. And she'll be under house arrest. She'll have a monitor on her leg. You know, one of those things that tells where you are at all times. And she has 48 hours a week to do things like market and church and so forth and so forth. And the rest of the time she's there. She has several residences. She picked the house in Bedford as the place where she will be. There's going to be a few months, I think, before she actually goes to prison.
KAGAN: Well, there's the appeal that's going to take place, and she has been granted a stay while that takes place.
Now, you have been very open and you have written about your personal friendship with Martha Stewart, how you have had lunch with her during the trial.
DUNNE: Yes.
KAGAN: She talked a lot today in the courthouse and also outside the courthouse about how she has already suffered quite a bit. She hasn't shared that publicly until now. Can you share with us a little bit more of how that's taken place?
DUNNE: Well, yes, I'll tell you, I couldn't hear her outside the courthouse. There were just so many people there, and I just couldn't hear. But I certainly heard her in the courtroom. And I think, from what I understand, it was pretty much the same talk both places.
It was the first time during the whole trial that Martha -- she didn't break down. I don't want you to think that she broke down, but she was deeply affected. Her voice was -- it was like she was holding back tears. There were tears in her voice. And it was very, very moving. And it was very, very -- she was concerned more about the people who worked for her, who would be losing their jobs, and so forth. I think...
KAGAN: Real quickly, Dominick I just want to get one last question in here. You have covered so many celebrity trials. You know this world. You know these people. Where did this go wrong for Martha Stewart that she now will most probably be going off to prison?
DUNNE: Well, I mean, I think she was -- there was a side of herself that came out today when she made that statement and after the statement when she turned and kissed her daughter, which was just enormously moving and motherly. And I think if a little bit more of that side of her had come out during the trial, it would have benefited her.
The jury seemed to take a dislike to her, and -- because she never showed any emotion. And that's typical of her. I mean, she's a -- you know, she's lived by this thing of being a strong, strong woman. And today she released some of that. Some of the -- it was very moving today. She was very moving. KAGAN: She showed the strength as well when she said out on the courthouse steps, she will be back. Dominick Dunne, thank you for your time.
DUNNE: OK.
KAGAN: It's always fascinating to hear and to read your insights.
Dominick Dunne will be a guest of Larry King later tonight; also David Chesnoff, who I just had a chance to talk to, one of the attorneys and friends of Martha Stewart. So, a lot more with Larry King and throughout our coverage today and tonight. And Martha Stewart, of course, will be a guest of Larry on Monday at 9:00 p.m. Eastern.
That's going to do it for me, Daryn Kagan wraps up the week. I'll be right back here Monday morning.
Wolf Blitzer takes over at the top of the hour.
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