Chiesi Blames Affair For Insider-Trading, Seeks Reduced Sentence

Jun 14 2011 | 1:32pm ET

Danielle Chiesi once pledged that she'd never spend a day in jail. Now, the former New Castle Partners executive would happily settle for anything under two years in the clink.

Lawyers for Chiesi, who pleaded guilty to insider-trading in January, asked that she receive a shorter sentence than her former boss and lover, Mark Kurland, who was sentenced to 27 months last year. Prosecutors have countered that Chiesi should get up to 46 months on the three counts of conspiracy.

"The dozens of recorded conversations between Ms. Chiesi and Mr. Kurland are replete with examples of Kurland encouraging her to get information, of Kurland belittling her ability to analyze financial data, or Kurland being the New Castle decisionmaker regarding investment decisions," lawyer Alan Kaufman wrote.

"We think it is self-evident—and can only hope that the court agrees—that the punishment due for the conduct at issue here should be mitigated once it is recognized as the manifestation of the psychological and emotional forces impacting on Danielle Chiesi, rather than the result of greed and venality," he continued.

Chiesi's boyfried, identified only as Billy, further accused Kurland of engaging in a "vicious cycle of abuse" and "psychological exploitation" to make Chiesi his "virtual servant."

Chiesi was originally to be the co-defendant of Galleon Group founder Raj Rajaratnam. While she did not take the stand in that trial, her flirtatious phone calls with Rajaratnam were played for the jury, which convicted the former billionaire last month.

Chiesi is set to be sentenced on June 30.

In Depth

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…