Martha Stewart stepped down as head of the company she built on gracious living - a media empire now scarred by an indictment that could send its taste-conscious founder to prison.

　　In New York, Stewart resigned as chairman and CEO of Martha Stewart Living Omnimedia Inc, which has made her a fortune and stamped her style on everything from magazines and TV screens to bed linens and bath towels. She plans to stay on as creative chief and a member of the board.

　　Stewart's resignation late on Wednesday came hours after federal prosecutors in New York charged her with obstruction of justice, conspiracy, securities fraud and lying to investigators.

　　She pleaded innocent on all counts.

　　The indictment stems from Stewart's sale of nearly 4,000 shares of the biotechnology company ImClone Systems on December 27, 2001 - the day before a disappointing government report on ImClone sent its stock price tumbling.

　　Also indicted was Peter Bacanovic, Stewart's former broker at Merrill Lynch, who prosecutors say illegally sent word to Stewart that the family of ImClone founder Samuel Waksal was unloading shares.

　　The charges carry up to 30 years in prison and a US million fine for Stewart, and 25 years and US.25 million for Bacanovic.

　　On the heels of the indictment, the Securities and Exchange Commission filed a civil complaint seeking to ban Stewart from ever leading a public firm and to limit her activity as officer of a public company.

　　Regulators also want the court to force Stewart and Bacanovic to pay more than US,000 - the losses they say Stewart avoided by un-loading the ImClone stock.