Chiesi Settles SEC Charges As Sentencing Looms

Jul 14 2011 | 2:28am ET

Danielle Chiesi, the former New Castle Partners executive and one-time co-defendant of Galleon Group founder Raj Rajaratnam, has settled Securities and Exchange Commission insider-trading charges against her.

Chiesi, possibly the most colorful character among the dozens arrested in the Galleon insider-trading scandal, will pay more than $540,000. The settlement was approved by U.S. District Judge Jed Rakoff, who is overseeing the civil cases stemming from the Galleon fraud.

In addition, Chiesi agreed not to violate SEC rules against fraudulent or deceptive practices.

Chiesi, who once vowed that she wouldn't spend a day in jail, faces almost four years in prison when she is sentenced later this month. She pleaded guilty to insider-trading charges in January, avoiding a trial with Rajaratnam, with whom she allegedly traded confidential tips. Chiesi blamed her affair with New Castle founder Mark Kurland, who also pleaded guilty in the case, for her participating.

Chiesi did not testify against Rajaratnam, who was convicted of insider-trading in May. But her flirtatious phone calls with Rajaratnam were played for the jury.


In Depth

An Interview With Harvest Volatility Management's Rick Selvala

Mar 23 2017 | 5:39pm ET

Several years of extremely low interest rates have pushed some investors into equities...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

SEI: Private Debt Coming Into Its Own

Mar 8 2017 | 9:24pm ET

The explosive growth of private debt over the past few years has caused the lines...