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Conviction upheld

NEW YORK: Martha Stewart (in the picture) has suffered a major setback in her quest to clear her name when a federal appeals court upheld the celebrity homemaker's conviction for lying about a well-timed stock sale. The 2nd U.S. Circuit Court of Appeals in Manhattan on Friday refused to reverse the 2004 convictions, rejecting all arguments offered by Ms. Stewart (64) and former stock broker Peter Bacanovic (43). Ms. Stewart and Mr. Bacanovic, convicted of lying about Ms. Stewart's sale of nearly 4,000 shares of ImClone Systems in 2001, said the verdict was tainted by prosecutorial and juror misconduct and erroneous evidentiary rulings and jury instructions. — AP

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