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Last Updated: Tuesday, 20 January, 2004, 19:27 GMT
Martha Stewart trial opens in US
By Jane Standley
BBC New York correspondent

Martha Stewart arrives at court
Americans are split over the case
Court proceedings for celebrity style guru Martha Stewart have begun, with the start of closed jury selection for her trial.

Martha Stewart, 62, faces charges of securities fraud and obstruction of justice.

Her company was once worth more than $1bn. Now she faces a maximum sentence of 30 years in prison and fines of $2m.

The case follows two years of investigation after she sold shares in a medical technology company.

Warm support

Martha Stewart swept into court with a wave and a grim smile to supporters who had gathered outside.

Some came dressed in chefs' hats and aprons and carried banners declaring: "Martha - you're being prosecuted for who you are!"

Inside, she reiterated her plea of not guilty to five charges of obstructing justice, making false statements and securities fraud.

The latter is the most serious - it carries a potential prison term of 10 years.

Jurors are now being selected behind closed doors for the trial - the outcome of which observers say is impossible to predict.

It is likely to rest on who puts up the best performance in the witness box - Martha Stewart or the chief government witness against her - a former assistant to her stockbroker.

Opinion divided

The case against her alleges that she lied to federal investigators about selling off shares in a friend's company after an insider trading tip.

Martha Stewart says she had a prior agreement with her broker to sell when the shares dropped below an agreed price.

The trial, which is expected to last about six weeks, has divided American opinion.

Some people say the case should show that rich celebrities are not above the law, while others ask what action is being taken against alleged white collar criminals from companies like Enron and World Com.


SEE ALSO:
Profile: Martha Stewart
20 Jan 04  |  Americas
Hope dawns for Martha Stewart
30 Oct 03  |  Business
Scandal hits Martha Stewart profits
11 Aug 03  |  Business
'Confident' Martha fights back
05 Jun 03  |  Business


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