A close friend of Martha Stewart has provided the last major link in a chain of evidence the US government hopes will convince jurors in New York that she lied about the home decorating magnate’s sale of ImClone Systems stock.

With an investigation looming, Martha Stewart sat down at her assistant’s computer and altered a record of a message left by her stockbroker about ImClone Systems stock, the assistant has told a New York court.

Martha Stewart, the creative force behind what was once a billion dollar empire of domestic “good things,” is due in court in New York tomorrow to face trial on charges she lied about a well-timed share sale that saved her €40,400.

In the US, shares of ImClone Systems were gaining ground in pre-market dealings this morning after the biotech firm said its early-stage cancer therapy research is yielding encouraging results.

American TV celebrity Martha Stewart, who built her fortune on giving advice on cooking and home decoration, has been charged over an insider-trading scandal that could put her behind bars.

Wall Street was puzzled by the possibility that Martha Stewart might soon face securities fraud charges for her alleged role in the ImClone insider trading scandal.

Persistent worries about corporate accounting scandals sent stock prices sharply lower again today as a new probe into the books of WorldCom worsened an already dismal climate of distrust in corporate America.

Share prices were higher in early trade after changing direction several times in uncertain price action, as investors reviewed a new set of technology sector research notes and a defense industry takeover offer, dealers said.

Trading opened flat on the Nasdaq composite and slightly lower on the DJIA.