Martha Stewart to Be Charged

American domestic icon Martha Stewart is expected to face criminal charges in the next few days related to a long-running insider dealing inquiry.

Her company, Martha Stewart Living Omnimedia, yesterday issued a statement saying that the US attorney's office in New York intends to seek an indictment against her.

If the charges are made the case will be the focus of enormous media attention in the US, where Ms Stewart has celebrity status.

TV network NBC last week screened a biopic staring the actress Cybil Shepherd to exploit the interest surrounding the insider dealing inquiries and a recent book depicting Ms Stewart as a fearsome character.

Shares in Ms Stewart's company, which produces a magazine, TV programming and kitchenware under her homey brand, were yesterday trading 17% lower at $9.31 (£5.68).

Through her lawyer, Robert Morvillo, Ms Stewart said if indicted, she would declare her innocence and proceed to trial. It is uncertain whether insider trading or lesser obstruction of justice charges will be brought against her.

A civil complaint by the securities and exchange commission is also expected against Ms Stewart. The allegations relate to her sale of $225,000 shares in the biotech firm Imclone in December 2001 a day before an announcement that federal regulators had turned down a review of cancer drug Erbitux.

Ms Stewart, 61, was a close friend of Imclone founder Sam Waksal, and prosecutors have been investigating whether she was among a number of people he allegedly tipped off ahead of the announcement. Mr Waksal has pleaded guilty to six of 13 charges and will be sentenced next week.