Danielle Chiesi to land in jail
One of the most colorful characters in the Raj Rajaratnam criminal insider trading scandal will go to prison for her considerable role in various crimes.
Danielle Chiesi, who pleaded guilty to fraud charges, was sentenced to 30 months in prison by a federal judge in Manhattan. She was also given two years of supervised release, 250 hours of community service, a $25,000 fine and mandatory mental health and alcohol treatment, according to the New York Times. Prosecutors had been seeking a 46 month jail term.
Chiesi never testified against her former boss at hedge fund Galleon Group, but her voice played a huge role in Rajaratnam's trial. Prosecutors played incriminating audio files of her conversations with her boss, revealing a flirtatious but highly effective style. She had a way with executives of tech companies. She remained loyal to Rajaratnam, at least in public, to the end. It does not appear that she provided any useful information to prosecutors, or even if they sought it.
She tried hard to stay out jail, calling herself the victim of psychological abuse by a former boyfriend, who has also been sentenced to prison for his role in the scandal. She also told the judge that she had borderline personality disorder and was under psychiatric care. She was enigmatic to the end.
"After the hearing ended, a smiling Ms. Chiesi approached federal prosecutors and agents for the Federal Bureau of Investigation. She told them that "if you're ever going to knock on my door then do it in the afternoon," in a nod to her early morning arrest in October 2009. Prosecutors wished her "good luck," as Ms. Chiesi left with her mother, sister and two nieces."
For more:
- here's the Times article
Related articles:
Danielle Chiesi settles some charges, still faces jail time
Danielle Chiesi says she was virtual slave to insider trading exec




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