Another domino in the Galleon Group insider trading case fell Wednesday as Danielle Chiesi, a former hedge fund consultant, pleaded guilty to three counts of conspiracy to commit securities fraud.
A judge’s order that defendants in a civil insider trading case turn over to the Securities and Exchange Commission wiretaps they obtained in discovery in their criminal case came under fire Thursday at the 2nd Circuit. A lawyer for Raj Rajaratnam and Danielle Chiesi, central figures in a wide-ranging insider trading prosecution that has already netted 11 guilty pleas, asked a three-judge panel to reverse New York federal Judge Jed Rakoff’s February order compelling production of the wiretaps.
Billionaire Manhattan hedge fund manager Raj Rajaratnam and another executive embroiled in a $52 million insider trading case were indicted Tuesday on multiple counts of conspiracy and securities fraud. Rajaratnam was arrested in October on a criminal complaint alleging he used inside information to make trades that generated millions of dollars in profits for a fund in his firm, the Galleon Group. The second person indicted in the case was Danielle Chiesi, a portfolio manager at New Castle Funds LLC.