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Old May 21st, 2004, 11:33 AM   #1
Dback Jon
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Join Date: May 2002
Location: Chandler
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Secret Service Agent Charged With Perjury in Stewart Trial


NEW YORK — Federal authorities Friday charged a national ink expert who works at the Secret Service (search) from the Martha Stewart (search) trial with perjury, accusing him of giving false testimony.

Prosecutors said they had discovered two false statements made on the stand by Larry F. Stewart. Larry Stewart is no relation to Martha Stewart.

Larry Stewart testified at the trial about a worksheet prepared by Martha Stewart's broker, Peter Bacanovic (search).

A government press release said prosecutors did not believe any of the new information called into question the "integrity or validity" of the convictions of Martha Stewart and Bacanovic.

Shares of Martha Stewart Living Omnimedia Inc. (MSO) rose as high as $10.40, before trading up $1.45 at $10 on the New York Stock Exchange (search) at mid-afternoon.

Bacanovic was cleared on the only charge related to the worksheet -- a charge that he added an "at 60" notation to support a cover story for why Martha Stewart sold ImClone Systems stock.

Larry Stewart's testimony was intended to show that the "at 60" ink was different from ink Bacanovic used on other marks on the worksheet.

The government said it had uncovered eight separate false statements made by Larry Stewart on the stand.

Among them was a statement by Larry Stewart that he took part in an August 2002 examination of the worksheet.

Manhattan U.S. Attorney David Kelley was holding a press conference to discuss the issue.

Larry Stewart surrendered to federal agents earlier in the day and was expected to appear in court later Friday.

The two perjury counts against Larry Stewart, 46, of Bethesda, Md., carry up to 10 years in prison.

Reuters and the Associated Press contributed to this report.
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