Martha Stewart was indicted on charges of conspiracy, obstruction of justice, and securities fraud, linked to a personal stock trade she made in 2001.
Martha Stewart pleaded not guilty and wanted to fight the charges.
Ms. Stewart went out of her way to cover up the sale of almost 4,000 shares of ImClone Systems, Ms. Stewart learned that her friend, Samuel D. Waksal, the founder of the company, were selling their own stock.
Ms. Stewart lied to investigators
She lied by telling them that she agreed with her stockbroker to sell the shares if the stock fell below a certain value. She also altered a phone message from her broker on her assistant's computer ''immediately following a lengthy conversation with her attorney.'
Separate Civil complaint from the Securities and Exchange Commission
This complaint accused Ms. Stewart of insider trading, she is said to have received information from Douglas Faneuil, assistant to the stockbroker, Peter Bacanovic. ''That was illegal insider trading,'' the regional director of the S.E.C., Wayne Carlin, said.
If convicted on all the charges
Ms. Stewart could face several years in prison and the possibility of a steep fine. Ms. Stewart energetically protected selling her stock as "Entirely Lawful." Also, several groups of investors in Martha Stewart Living Omnimedia are suing her over her conduct.
Miriam Goldman Cedarbaum read ''Guilty,''
The judge read guilty 3 times for the charges counted against Ms. Stewart. Ms. Stewart is scheduled to be sentenced June 17, unless her case is overturned on an appeal, she faces a punishment of up to 16 months in prison.