New York (HedgeCo.net) – Danielle Chiesi has pleaded guilty at a plea proceeding in U. S. District Court located in New York. She was accused of receiving insider information worth $1.7 million from Robert Moffat, Jr., who also pleaded guilty in the Galleon hedge fund fraud scheme. Moffat was sentenced to 6 months in prison.
From August to October 2008, Moffat got insider information relating to IBM, Advanced Micro Devices, Inc. (AMD) and Lenovo Group Ltd. (Lenovo), providing the insider information to to Chiesi, hedge fund founder Raj Rajaratnam’s co-defendant. She worked for New Castle Partners, an equity hedge fund group affiliated with JPMorgan Chase & Co.
The court documents reveal that in September 2008, Moffat provided Chiesi with information relating to IBM’s and Lenovo’s performance in the companies’ respective fiscal quarters ending in September 2008.
Chiesi was worried about being caught in the scheme, according to transcripts of the FBI wiretaps Courthouse News Services published. “You put me in jail if you talk,” she said in one conversation. “I’m dead if this leaks. I really am … and my career is over. I’ll be like Martha fucking Stewart.”
Chiesi and Rajaratnam were arrested in October 2009. Her guilty plea comes a month before Rajaratnam goes on trial.
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