Insider-Trader Chiesi Reports To ‘Camp Cupcake’

Oct 18 2011 | 8:27am ET

Danielle Chiesi, the former hedge fund executive and convicted insider trader, arrives at Federal Prison Camp Alderson—‘Camp Cupcake’—today to begin serving her 30-month sentence.

Chiesi pled guilty to passing illegal stock tips to hedge fund billionaire Raj Rajaratnam, who last week was sentenced to 11 years in federal prison. Both convictions were part of the biggest U.S. insider-trading case of all time, one that unraveled two interlocking rings within Rajaratnam’s multi-billion dollar Galleon Group.

Chiesi’s home for the next two-and-a-half years, situated in the foothills of the Allegheny Mountains, was modeled after the campus of Pennsylvania’s Bucknell University and has none of the usual trappings of a federal prison (barbed wire, fences, guard towers).

Alderson was the first women’s prison in the U.S., opened in 1927, and its higher-profile inmates have included Martha Stewart, Billie Holiday and Charles Manson follower (and would-be presidential assassin) Lynette “Squeaky” Fromme.

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