Galleon Defendant Chiesi Seeks Suppression Of Statements

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.


In Depth

Will Liquid Alts’ Performance Sustain Future Asset Flows?

Aug 25 2014 | 10:34am ET

Liquid alternative investment funds saw the highest percentage of capital inflows...

Lifestyle

Och Funds Women In Finance Initiative At U-M

Aug 28 2014 | 3:01pm ET

Och-Ziff Capital founder Daniel Och and his wife have made a "generous donation"...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.