NEW YORK (CNN/Money) - Martha Stewart's co-defendant will report to prison early, but his lawyers say they will continue to appeal his conviction for lying to federal investigators about a well-timed stock sale by Stewart, a newspaper reported.

The Wall Street Journal said that Peter Bacanovic, ex-Merrill Lynch & Co. broker and Stewart's former stockbroker, will begin serving his five-month sentence Jan. 18.

Judge Miriam Goldman Cedarbaum will recommend to the Bureau of Prisons that he report to the Nellis federal prison in Las Vegas, the paper said, citing Bacanovic's lawyer Richard Strassberg.

At a sentencing hearing in July, the judge ruled that Bacanovic would be allowed to remain free pending his appeal. But Judge Cedarbaum granted Bacanovic's request, made earlier this week, to report to prison early, the Journal said.

Following the prison term, Bacanovic will serve five months of home detention.

Stewart and Bacanovic were both convicted in March on four felony counts each of obstructing justice and making false statements related to Stewart's sale of ImClone (Research) stock in late 2001.