Martha Stewart faces charge

Federal prosecutors investigating alleged insider-dealing will decide in the next few days whether to charge Martha Stewart - America's 'diva of domesticity' - with obstruction of justice.

The charge would centre on what Stewart told investigators about the sale of 4,000 shares in pharmaceutical company ImClone on 27 December. A day later the shares plunged after the release of negative news.

If Stewart is found guilty she faces up to ten years' jail and a fine of $250,000 (£165,000).

Stewart has denied any wrongdoing and told investigators that the shares were sold automatically on a stoploss order. But that has been disputed by her stockbroker's assistant.

Stewart, who built a multi-media empire on her expertise at everything from tossing a salad to decorating a bathroom, has been under investigation for weeks.

ImClone founder Sam Waksal was charged last week with bank fraud, perjury and obstruction of justice. Waksal, who is said to have dated Stewart and her daughter, is alleged to have tipped off friends that it was time to sell ImClone shares.

The scandal has cost Stewart dear. Her shares in the company she founded, Martha Stewart Living OmniMedia, have plunged 60%.

The ImClone share sale netted her $227,824, but the fall in the shares of her company has cost her more than $400m on paper.