By Erin McClam
The Associated Press

NEW YORK - Martha Stewart's lead lawyer is concerned that jurors at her stock-fraud trial might mistakenly think that the style-setter is charged with insider trading.

Attorney Robert Morvillo twice raised the issue with U.S. District Judge Miriam Goldman Cedarbaum this week between interviews of potential jurors, according to transcripts released Thursday.

"These jurors are coming in here. Many of them have written the same thing, thinking that she has been charged with criminal insider trading," Morvillo said Wednesday, according to a transcript released Thursday.

The judge replied: "I will see to it that the jury does not believe that there is a charge of insider trading."

Stewart is accused of lying to investigators and misleading investors in her own company about why she sold 3,928 shares of ImClone Systems stock in 2001, just before it plummeted on a negative government review of an ImClone drug.

The government says she was tipped that ImClone founder Sam Waksal was trying to sell his shares.

Waksal has admitted getting advance word of the government decision and pleaded guilty to insider trading. But Stewart was never accused by the government of personally knowing about the government report.

The judge has begun each day of juror interviews by addressing potential jurors as a group in open court. Each day, she lists the charges against Stewart and former stockbroker Peter Bacanovic, but she does not mention insider trading.

Thursday, the government, defense lawyers and the judge continued the laborious task of interviewing jurors one by one to screen for bias. A jury of 12 is expected to be seated Monday at the earliest.

Stewart appeared upbeat as she arrived at the federal courthouse in Manhattan, smiling widely, waving twice and giving a thumbs-up sign to seven supporters.

The fans - shouting, "Go Martha! Innocent!" - carried placards that spelled out "SAVE MARTHA!" in pastel colors, and some brandished silver kitchen utensils like whisks, slotted spoons and spatulas.

Stewart did not speak to reporters as she left court in the evening. Juror interviews were to continue this morning.

Stewart says she and Bacanovic, who is on trial with her, had a standing order to sell Stewart's stable of ImClone shares when the stock price fell to $60.