- NEW YORK (Reuters)
-- Domestic trendsetter Martha Stewart, who built a media empire on tips
for gracious living, was found guilty on Friday of all counts in the trial
over a suspicious sale of stock where she was accused of lying to investigators.
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- The eight women and four men returned their verdict on
the third day of deliberations. The verdict came after a lunch break during
which rumors of an imminent conclusion of the case sent stock in Stewart's
own company Martha Stewart Living Omnimedia Inc. sharply higher.
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- Stewart was found guilty of one count of conspiracy,
two counts of making false statements and one count of obstruction of agency
proceedings. Stewart will be sentenced on June 17.
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- Each count carries a possible prison term of five years
and a $250,000 fine, although legal experts do not expect Stewart to receive
the stiffest sentence.
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- In the trial, related to her suspicious sale of stock
in biotech company ImClone Systems Inc., her co-defendant and stockbroker
Peter Bacanovic was found guilty of four of the five counts against him.
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- Stewart, 62, oversees a media empire of magazines, books,
television programs and home products.
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- ImClone shares fell steeply the day after Stewart's stock
sale when it was announced that health regulators had refused to approve
the company's cancer drug.
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- ImClone is a biotech company founded by Stewart's friend
Sam Waksal. Waksal was later sentenced to seven years in prison for insider
trading.
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- Prosecutors said Bacanovic, 41, ordered his assistant
to tip Stewart that Waksal was dumping all his ImClone shares. They said
Stewart and her broker lied to cover up the secret tip.
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