Friday, 25 July 2014
Last updated 4 hours ago
Sep 27 2010 | 2:59pm ET
The insider-trading co-defendant of Galleon Group founder Raj Rajaratnam will get her chance to have statements she made on the morning of her arrest tossed from the case.
U.S. District Judge Richard Holwell agreed to hear arguments on the admissibility of the statements Danielle Chiesi made on Oct. 16. Lawyers for the former New Castle Partners executives, accused of being part of the Galleon insider-trading ring that has produced more than 20 arrests and a dozen guilty pleas, argue that Chiesi was not advised of her rights when the Federal Bureau of Investigation agents arrived at her door at 6 a.m.
“The statements elicited from Danielle Chiesi by the agents must be suppressed because they were made in a custodial setting without having been preceded by the advice of her rights,” lawyers Alan Kaufman and James Keneally wrote. “They informed the defendant that Raj Rajaratnam was already in custody, that she had the opportunity to help herself by cooperating, but either way she was going to be arrested then and there or later in the day if she agreed to cooperate.”
Chiesi was questioned for about 90 minutes, her lawyers said.
Prosecutors denied Chiesi’s allegations, saying that the FBI agents would testify that she was read her Miranda rights and agreed to speak with them before she made the statements in question.
Holwell will hear arguments on Oct. 18. Both Chiesi and Rajaratnam have pleaded not guilty to the charges against them.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…