Westports Martha Stewart asked a federal judge today to toss out two of five counts against her in an indictment surrounding her sale of ImClone shares in 2001 just before the stock plunged.
Stewart, in papers filed in Manhattan federal court, asked the judge to dismiss one count of securities fraud and one count of obstruction of justice. She is also charged with two counts of false statements and one of perjury.
Martha Stewart’s mom celebrated her 89th birthday on Sept. 16. Stewart and niece Sophie Herbert made a white birthday cake with Italian meringue frosting and fresh red raspberries. Marthatalks.com photo
The indictment accuses Stewart of selling shares of ImClone stock on Dec. 27, 2001, because she had been illegally tipped that the family of company founder Sam Waksal was planning to sell shares.
Stewart and stockbroker Peter Bacanovic, who was indicted with her in June, have pleaded innocent.
The securities fraud count alleges Stewart deliberately deceived shareholders in her company, Martha Stewart Living Omnimedia, when she declared in 2002 that she was innocent and was cooperating with investigators.
“This charge is unprecedented in the 70-year history of the federal securities laws,” Stewart’s lawyers, Robert Morvillo and John Tigue, said in a statement.
The lawyers also say the obstruction count should be dismissed because none of Stewart’s statements to investigators hindered the federal investigation into her stock sale.
The government has until Nov. 5 to respond to the filing. Arguments are set for Nov. 18, and Stewart and Bacanovic are to go to trial Jan. 12.
Continuing her public defense, Stewart posted the court filing on a Web site she has used to air her side of the story. Stewart also posts supportive e-mails from fans and newspaper columns that argue she is innocent.
