After a highly publicized six-week jury trial, Stewart was
found guilty in March 2004 of felony charges of conspiracy, obstruction of an agency proceeding, and making false statements to federal investigators, and was sentenced in July 2004 to serve a five-month term in a federal correctional facility and a two-year period of
supervised release (to include five months of
electronic monitoring).
[51]
Bacanovic and Waksal were also convicted of federal charges and sentenced to prison terms.
[53][54] Stewart also paid a fine of $30,000.
[55]
In August 2006, the SEC announced that it had agreed to settle the related civil case against Stewart. Under the settlement, Stewart agreed to
disgorge $58,062 (including interest from the losses she avoided), as well as a civil penalty of three times the loss avoided, or $137,019. She also agreed to a five-year ban from serving as a director, CEO, CFO, or any other officer role responsible for preparing, auditing, or disclosing financial results of any public company.
[56] In June 2008, the
UK Border Agency refused to grant her a visa to enter the United Kingdom because of her criminal conviction for obstructing justice. She had been planning to speak at the
Royal Academy on fashion and leisure industry matters.
[57]