A federal appeals court Friday upheld the conviction of celebrity style setter Martha Stewart for lying about a stock sale.
In 2004, Stewart was convicted on charges of conspiracy, obstruction of justice and making false statements and her former Merrill Lynch stockbroker, Peter Bacanovic, was convicted on four of five counts against him.
An appeals court upheld Stewart’s conviction for lying about a stock sale.
Shares of Martha Stewart Living Omnimedia have lost almost 40 percent in the last year.
Stewart served five months in prison and near six months of house arrest starting in October 2004.
The charges stemmed from Stewart’s sale of almost 4,000 shares of ImClone Systems stock in late 2001, just before the shares tumbled following a negative FDA ruling about the cancer drug Erbitux, which was later approved for use against colon cancer.
Stewart was released from house arrest last August.
The decision by the U.S. Court of Appeals for the Second Circuit in New York affirms that her conviction will not be overturned. But the court also ruled that Bacanovic’s sentence could be reviewed.
“We conclude that none of the numerous grounds upon which defendants challenge their convictions provides a basis to disturb the jury’s verdict and, therefore, we affirm the judgments of the District Court, and remand the case solely for consideration of whether to modify Bacanovic’s sentence,” the appellate court said in its ruling.