Martha Stewart's conviction and sentencing upheld

Martha Stewart's conviction and sentencing upheld

NEW YORK - The United States Court of Appeals for the Second Circuit upheld Martha Stewart's conviction and rejected her appeal, which had claimed that the jury had been tainted in her March 2004 trial.

Ms Stewart, founder of the Martha Stewart Living Omnimedia, and her stockbroker, Peter E. Bacanovic were convicted of lying about a stock sale and subsequently Stewart served five months in prison. The federal court upheld her conviction as well as sentencing, but has ruled that Bacanovic's case be reconsidered.

The case revolved around the sale of 4,000 shares in ImClone Systems by Ms Stewart on December 27, 2001 after Bacanovic told her that ImClon'es chief executive was selling his shares. This was followed by an announcement by the biotechnology company that the government had rejected its Erbitux cancer drug. Naturally, shares in ImClone dived and authorities began an investigation into the same.

The jury had convicted both Stewart and Bacanovic of misleading the investigating authorities. Both were given sentences of five months in prison and five months in home confinement. But they appealed against the conviction saying that the jury was misled and prosecutors were unduly influenced. The Federal court in Manhattan turned down the appeal, "None of the numerous grounds upon which defendants challenge their convictions provides a basis to disturb the jury's verdict," Judge Peter Hall wrote in the decision.

A spokeswoman for her company said that they were disappointed with the verdict, "We are disappointed for Martha, but this does not affect her ability to continue to do everything she's been doing for the company since coming home." It was not immediately known if there would be any further appeals from either side.