August 15, 2022

Galleon Case Figure Settles With S.E.C.

Danielle Chiesi, convicted of insider trading as part of the case against the Galleon Group hedge fund, agreed to pay $540,000 to settle related allegations by the Securities and Exchange Commission.

In addition to her liability for $500,000 in principal and $40,535 in interest, Ms. Chiesi agreed not to violate S.E.C. rules prohibiting her from engaging in fraudulent or deceptive practices including insider trading.

Ms. Chiesi, 45, who was an analyst at New Castle Funds, and Mark Kurland, New Castle’s co-founder, both pleaded guilty in connection with a government investigation of hedge fund insider trading centered on Galleon and its co-founder, Raj Rajaratnam.

The S.E.C. first sued Mr. Rajaratnam, Ms. Chiesi, Mr. Kurland and three other people in October 2009. Her agreement resolves allegations contained in a revised complaint filed last year.

Ms. Chiesi’s lawyer, Alan R. Kaufman, on Wednesday declined to comment. On Jan. 19, Ms. Chiesi pleaded guilty to three counts of conspiracy, telling United States District Judge Richard J. Holwell that she was “deeply ashamed” of what she had done.

Prosecutors have recommended a prison term of 37 to 46 months when she is sentenced on July 20.

Mr. Kurland, 62, is serving his sentence in Otisville, N.Y. according to the Federal Bureau of Prisons Web site.

Article source: http://feeds.nytimes.com/click.phdo?i=ed4a8a7db503b04a3f9089f0673f33df

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