Stewart Accused of Cover Up

Martha Stewart, America's best known businesswoman, chose to "lie, conceal and cover up" the truth about a suspicious share sale, the jury in her obstruction of justice trial was told during closing arguments yesterday.

Prosecutor Michael Schachter said that Ms Stewart lied to government investigators because "she thought she would never get caught".

He detailed a "trail of evidence", including damaging testimony from her best friend, emails and an apparent attempt to tamper with evidence witnessed by her assistant.

Ms Stewart, along with her co-defendant, a former Merrill Lynch broker, are accused of misleading authorities about her sale of shares in the drug firm ImClone in December 2001. Prosecutors allege that Peter Bacanovic improperly passed on a tip that the company's founder and his family were trying to unload stock.

When they were summoned to meetings with federal inves tigators, "Martha Stewart and Peter Bacanovic had two options, tell the truth or decline to be interviewed. They chose an option the law does not allow - to lie, conceal and cover up."

Much of the prosecution's closing argument focused on the credibility of the government's key witness, Mr Bacanovic's former assistant, Douglas Faneuil. Mr Faneuil told the jury that it was he who had been ordered to pass on the tip to Ms Stewart. "If you believe Douglas Faneuil's testimony this trial is over," Mr Schachter said. Mr Faneuil has admitted a misdemeanour of initially supporting Ms Stewart and Mr Bacanovic's story and could face a year in prison.

Mr Schachter ridiculed the stories that Mr Bacanovic and Ms Stewart gave to prove their innocence. Mr Bacanovic first spoke of a "tax-loss" sale and only later alleged an agreement to sell the shares when they hit $60 - the cornerstone of the defence.

The defence is expected to make its closing arguments today.