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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).In August 2006, the SEC announced that it had agreed to settle the related civil case against Stewart.Andrew had become the president of prominent New York City publisher, Harry N. In 1977, he was responsible for releasing the English-language edition of The Secret Book of Gnomes series, by Dutch authors Wil Huygen and Rien Poortvliet, which quickly became a blockbuster success and was on The New York Times Best Seller list.He contracted Stewart's company to cater the book release party, where Stewart was introduced to Alan Mirken, head of Crown Publishing Group.Andrew and Martha Stewart moved to Westport, Connecticut, where they purchased and restored the 1805 farmhouse on Turkey Hill Road that would later become the model for the TV studio of Martha Stewart Living.

The company also had a direct-to-consumer floral business.Circulation would peak in 2002 at more than 2 million copies per issue.In 1993, she began a weekly half-hour service program based on her magazine, which expanded to weekdays in 1997 and later to a full hour show in 1999, with half-hour episodes on weekends.Notably, on June 25, 2002, CBS anchor Jane Clayson grilled Stewart on the air about Im Clone during her regular segment on The Early Show.Stewart continued chopping cabbage and responded: "I want to focus on my salad." On October 3, 2002, Stewart resigned her position, held for four months, on the board of directors of the New York Stock Exchange, following a deal prosecutors had made with Douglas Faneuil, an assistant to Bacanovic.

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