Stewart Charges Are Modified

Federal prosecutors Monday modified the wording of their fraud indictment against Martha Stewart to make it easier for them to win a conviction, defense lawyers not involved in the case said.

The new indictment, which came a day before jury selection was to begin today, did not add counts or charges. Instead, it amplified the language in the obstruction-of-justice charges against the founder of Martha Stewart Living Omnimedia Inc. Stewart is now accused of making “false and misleading” comments to investigators; the earlier indictment charged her with uttering only false statements.

“Misleading has a broader connotation,” said Robert Zatorski, a criminal defense attorney with Saddle Brook, N.J.-based Cohn Lifland Pearlman Herrmann & Knopf. “It broadens the scope of the charges, and it’s significant. If I’m on the defense team, I’d be furious the government was doing this at the 12th hour.”

Stewart’s spokeswoman, Brooke Morganstein, declined to comment, as did Michael Kulstad, a spokesman for interim U.S. Atty. David Kelley.

The new indictment also modified the securities fraud charge against Stewart.

The old indictment said she “concealed” important information from investors. The new one said she “concealed” and “omitted” telling investors the information.

The modifications to the indictment may prompt Stewart’s defense team to seek a postponement of the trial, Zatorski said.

Stewart, who built her homemaking savvy into a multimillion-dollar business, faces obstruction-of-justice and securities-fraud charges over statements she made about her sale of ImClone Systems Inc. stock.