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Updated Jan. 6, 2006, 1:09 p.m. ET

Federal appeals court upholds Martha Stewart's conviction
Martha Stewart was convicted in 2004 of lying to the government.

NEW YORK (AP) — A federal appeals court Friday upheld the conviction of celebrity homemaker Martha Stewart months after completing her sentence of five months in prison and five months of house arrest.

Stewart was convicted in 2004 of lying to the government about a stock sale. She served five months in prison in West Virginia before beginning five months of home detention last March at her Westchester County estate, north of New York City.

Stewart and former stockbroker Peter Bacanovic were convicted of lying about why Stewart dumped nearly 4,000 shares of ImClone Systems Inc. stock in 2001, just before it took a dive on a negative government report about the company.

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Martha Stewart Stock Scandal




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