SEC Likely to File Civil Charges Against Stewart

Martha Stewart was notified by Securities and Exchange Commission staffers that they will recommend filing civil insider-trading charges against the multimedia tycoon in connection with her sale last December of shares of ImClone Systems Inc., sources said.

The move was a major setback for Stewart, who also is the focus of a criminal investigation into the circumstances surrounding the sale of her ImClone shares. She has steadfastly denied any wrongdoing.

The SEC’s enforcement staff this month sent Stewart a formal notification that the staff is asking the five SEC commissioners for approval to file civil securities-fraud charges against Stewart, a source said.

Stewart had no comment.