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

Q&A: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

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

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

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.