By Erin McClam
The Associated Press

NEW YORK - A federal judge Friday tossed out the most serious charge against Martha Stewart, a count alleging she deceived investors in her company when she publicly declared her innocence in the ImClone stock trading scandal.

The decision by U.S. District Judge Miriam Goldman Cedarbaum came just five days before jurors are expected to begin deciding the case against the celebrity homemaker and her stockbroker.

Stewart still faces four criminal counts - conspiracy, obstruction of justice and two counts of lying to investigators. The judge declined to throw out any of the five counts against broker Peter Bacanovic.

The securities fraud count carried a potential prison sentence of 10 years and a $1 million fine. The remaining four counts against Stewart each carry a prison sentence of five years and a $250,000 fine.

Legal analysts said the ruling was cause for celebration for Stewart's defense team - but cautioned that it was by no means a signal that she will be cleared of all charges by a jury.

The count accused Stewart of trying to prop up the stock price of Martha Stewart Living Omnimedia when she claimed she had sold ImClone because of a deal with Bacanovic to dump the stock when it fell to $60.

The government claims that was a lie, and that Stewart sold instead because Bacanovic sent word to her that her friend, ImClone founder Sam Waksal, was frantically trying to sell his ImClone shares.