Alleged Chiesi Tipster ID’d

Jan 12 2011 | 11:45am ET

Another piece of the puzzle that is the Galleon Group insider-trading case fell into place last week with the outing of one of the alleged tipsters.

Kieran Taylor, a former senior marketing director at Akamai Technologies, gave confidential information about the company to Danielle Chiesi, the former New Castle Partners executive and former co-defendant of Galleon founder Raj Rajaratnam, the SEC told Rajaratnam’s lawyers.

The accused insider-trader’s legal team made the disclosure on Jan. 5; the SEC disclosed Taylor’s identity in response to a question from Rajaratnam’s lawyers. Previously, he had been the unidentified “Akamai Technologies executive” who “tipped Chiesi to material non-public information about Akamai’s Q2 2008 earnings.” The Securities and Exchange Commission said he was a “family friend of Chiesi’s.”

Taylor has not been charged either criminally or civilly. Rajaratnam and Chiesi have not been so lucky; both have pleaded not guilty and are set to go on trial later this year.

Chiesi allegedly shared the information provided by Taylor to both Rajaratnam and her former New Castle boss, Mark Kurland. Kurland, Chiesi’s former lover, pleaded guilty to insider-trading charges and was sentenced to six months in prison.

In the Jan. 5 filing, Rajaratnam’s lawyers also said that the SEC had positively identified Chiesi’s Advanced Micro Devices tipster as former CEO Hector Ruiz. Ruiz had previously been so identified in the press; he has not been charged with any wrongdoing.


In Depth

'Smart Beta' Funds In Regulators' Sights, Hedgies May Be Next

Mar 26 2015 | 11:11am ET

Funds that mimic strategies used by active managers for a fraction of the cost could...

Lifestyle

Study: Both Marriage and Divorce Lead to Negative Hedge Fund Performance

Mar 25 2015 | 6:51pm ET

Trouble at home leads to trouble in the market for fund managers, according to researchers...

Guest Contributor

The Life Settlement: Yield For The Investor And Cash For The Consumer

Mar 31 2015 | 6:48am ET

Investors are languishing in a yield-starved, low-interest rate environment, looking...

 

Sponsored Content

    Mar 9 2015 | 6:35am ET

    Kelly RodriquesKelly RodriquesAs more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…

Editor's Note