Chiesi, Ex-IBM Exec. Had ‘Intimate Relationship’

May 27 2010 | 10:59am ET

Danielle Chiesi may be codefendants with Galleon Group founder Raj Rajaratnam. But she had an even more special relationship with another of the accused in the insider-trading case.

According to prosecutor Reed Brodsky, former IBM executive Robert Moffat was involved in an “intimate relationship” with Chiesi, a former executive at hedge fund New Castle Partners. Brodsky made the allegation at the sentencing of Chiesi’s former boss at New Castle, Mark Kurland, last week.

Kurland, the first of the 21 people charged in the case to be sentenced, received more than two years in prison.

Moffat pleaded guilty to providing confidential information about IBM, Advanced Micro Devices and Lenovo Group to Chiesi, who allegedly used the tips to trade, as well as passing them on to others. According to his lawyers, Moffat did not trade illegally himself or accept any money for the tips; according to Brodsky, he was motivated by love. Unlike most of the 11 defendants who have pleaded guilty in the case, Brodsky did not cooperate with prosecutors.

Moffat faces up to six months in prison when he is sentenced on July 26.


In Depth

Q&A: Decathlon Capital On Revenue-Based Alternative Lending

Oct 30 2017 | 3:49pm ET

The explosion in private credit activity since the end of the financial crisis is...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

CAIS: How Technology is Disrupting the Alternative Investment Industry

Nov 7 2017 | 5:35pm ET

If there’s one thing that alternative investment professionals can agree on, it...