Chiesi To Plead Guilty In Galleon Case

Jan 19 2011 | 10:30am ET

Danielle Chiesi, the former hedge fund executive and co-defendant of Galleon Group Raj Rajaratnam, is expected to plead guilty to insider-trading charges this afternoon.

Chiesi, who worked at New Castle Partners, will appear before U.S. District Judge Richard Holwell to enter her new plea at 1 p.m. in New York. It is unclear whether she has agreed to cooperate with prosecutors in the case against Rajaratnam or any of the other defendants; such a deal may be revealed at today's hearing. But Reuters reports that Chiesi will not testify against Rajaratnam.

If she does plead guilty, Chiesi will be the 16th defendant to do so. In total, 24 people have been charged in what has been called the biggest insider-trading case in U.S. history. Chiesi herself is alleged to have made more than $4 million in illegal profits.

Among those who have already pleaded guilty are Chiesi's former boss, Mark Kurland, and former IBM executive Robert Moffat, with whom she was having an affair.

It is also unclear how much jail time Chiesi, a former beauty queen, will face. She is charged with more than a dozen counts of conspiracy and fraud which carry a total of more than 100 possible years in prison, but one year ago she vowed, "there is not even a chance we will do one day in jail."

But Chiesi and Rajaratnam lost their bid to keep tens of thousands of potentially damning wiretaps out of their trial. Last month, Holwell split their trials; Rajaratnam's is to begin on Feb. 28 and Chiesi's was to follow on April 25.


In Depth

Whisky Business: The Ultimate Liquid Alternative Investment

Sep 15 2014 | 7:02am ET

David Robertson knows his single-malt whisky—he was the Master Distiller at the...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

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

In search of the ‘new normal’ at the Fed

The Federal Reserve keeps baby-stepping toward a “normalization” of monetary policy. But just what is normal?

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.