Lawyers for Martha Stewart rest their case at her trial

NEW YORK — Martha Stewart's defense rested Wednesday after calling just one witness — a lawyer who was with her the first time she spoke to investigators about her sale of ImClone Systems stock.

The witness, Steven Pearl, was on the stand for less than 45 minutes.

The defense team for Stewart's co-defendant and former stockbroker, Peter Bacanovic, rested earlier Wednesday after calling five witnesses over three days.

U.S. District Judge Miriam Goldman Cedarbaum was still deciding the schedule for closing arguments, but has said the jury could receive its instructions and start deliberating as soon as Monday.

Pearl testified about notes he took on Feb. 4, 2002, when Stewart spoke to authorities about why she had sold ImClone stock in late 2001.

The government claims she said that day that she did not recall whether Bacanovic left her a message on the day she sold the stock. Pearl's notes suggest Stewart may have said she did not recall the time Bacanovic called.

Lying about the existence of the message is one element of the government's allegation that Stewart made false statements to investigators.

Stewart and Bacanovic are accused of lying about why Stewart sold ImClone Systems stock on Dec. 27, 2001.

Stewart and Bacanovic say they had prearranged to sell her shares when the price fell to $60. The government claims Stewart was tipped that ImClone founder Sam Waksal was frantically trying to sell his shares that day.

Legal experts said putting Stewart on the stand would have raised a host of concerns for her defense team, including having her explain inconsistencies in her statements and exposing her to risky cross-examination by the government.

Other testimony at the trial had shown Stewart's quick temper, and she could have damaged her case by appearing hostile or combative under intense questioning by prosecutors.

Lawyers for Bacanovic had decided he would not take the stand because "the government hasn't made its case," spokesman Lou Colasuonno said. "It's a circumstantial case, with a lot of inference."

The star witness for the government was Douglas Faneuil, the young Merrill Lynch & Co. assistant who claims he passed the tip about the Waksal selling from Bacanovic to Stewart.