NEW YORK, Feb. 20 (UPI) -- The prosecution rested Friday in the New York trial of Martha Stewart with testimony backing a broker assistant's claim of insider trading.
Stewart is accused of selling ImClone Systems Inc. stock after being improperly tipped by Douglas Faneuil, an assistant to her broker, Peter Bacanovic of Merrill Lynch & Co.
The testimony from two of Faneuil's friends was considered important because Faneuil didn't report the alleged 2001 insider trading until June 2002, The Washington Post reported. The two friends testified Faneuil told them about the matter in April 2002.
The defense asserts the aide changed his story because he was afraid of prosecution.
Stewart and broker Bacanovic are charged with conspiracy and lying to federal investigators.
Stewart is also accused of securities fraud for allegedly misleading the public about the ImClone shares' sale to avoid negative effects on the stock of her own company, Martha Stewart Living Omnimedia Inc.
