Wednesday, 29 June 2016
Last updated 2 hours ago
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.