US style icon Ms Martha Stewart is facing impending criminal and civil action over insider trading allegations, her company said today.
The US attorney for the southern district of New York has informed Ms Stewart's lawyers that she was the target of a criminal investigation, the firm said in a statement.
"The United States Attorney's Office intends to request the grand jury to return an indictment against her in the near future," said the statement by Martha Stewart Living Omnimedia Inc.
The Securities and Exchange Commission also was expected to file a civil complaint, it said.
"MSO and its board of directors have been planning for a number of possible contingencies, are evaluating the current situation and will take action as appropriate," the company said.
Ms Stewart has denied wrongdoing after selling about $225,000 worth of shares in biotechnology company ImClone a day before US regulators rejected its promising cancer drug.
ImClone founder Mr Sam Waksal is a family friend of Ms Stewart.
But Ms Stewart, a multimillionaire, said the trade was based on an agreement with her Merrill Lynch broker to sell the ImClone shares once they fell below a certain level.
AFP