West Virginia daily

Stewart is serving five months under home detention following her criminal conviction a year ago on charges related to a personal stock sale. Stewart, 63, must wear an electronic ankle bracelet at all times and is allowed to leave her upstate New York home for up to 48 hours a week, for work or other pre-approved reasons.

The investigation stems from Stewart's attendance last week at a celebration of Time magazine's "100 Most Influential People" issue, which recognizes the domestic diva. Time and CNN/Money are owned by Time Warner.

Chris Stanton, the chief probation officer of the Southern District of New York, confirmed to CNN that an investigation is underway.

"We are looking into whether Martha Stewart violated the conditions of her release," said Stanton. He also said that Stewart was cleared to attend the event ahead of time. A call from the New York Post, which first reported the story Sunday, prompted the inquiry.

It's not clear why probation officials are now questioning whether they should have approved Stewart's attendance at the Time event.

Stewart, the founder of Martha Stewart Living Omnimedia, has been a common sight at major New York media events lately as she tries to resurrect her flailing lifestyle media and merchandising company.

Two weeks ago Stewart attended the National Magazine Awards, in which two Martha Stewart Living (up $0.22 to $20.42, Research ) publications won top honors. Presumably her presence there was also approved and is not part of the current inquiry.

Stewart could be disciplined if she is found to have violated her probation. She could be denied all travel until August, when her home confinement is scheduled to end. There's also the remote possibility that she could be sent back to prison.

Stewart was released in early March from a minimum-security prison in West Virginia known as "Camp Cupcake."

She served five months there for allegedly lying to government investigators about her well-timed late 2001 sale of ImClone Systems (Research ) stock right before a public disclosure by the company sent its stock down sharply.

Stewart denies she broke the law and is appealing her conviction.

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