Chiesi Seeks To Keep Wiretaps Secret In Secret

May 7 2010 | 3:23am ET

Danielle Chiesi, Galleon Group founder Raj Rajaratnam’s co-defendant in the largest insider-trading case in U.S. history, will seek to exclude the wiretaps at the center of the government’s case against her—secretly.

The former New Castle Partners executive can file her motion to exclude the 18,000 wiretaps under seal, U.S. District Judge Richard Holwell ruled. Chiesi’s lawyers explained that the filing will have “substantial and extended references” to the wiretaps, which Holwell has previously ruled should remain confidential, at least until he determines whether or not they are admissible.

Chiesi’s lawyers are expected to file their brief today. Rajaratnam’s lawyers have also indicated that they will challenge the legality of the wiretaps.

Chiesi and Rajaratnam are set to go on trial in October. Both have pleaded not guilty. If convicted of the insider-trading charges, each faces more than 100 years in prison.

All told, 21 people have been charged in the Galleon case, with prosecutors winning 11 guilty pleas.

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