Sordid tale: The IBM exec and the hedge fund analyst

The story of Robert Moffat, the star IBM executive (IBM news), and Danielle Chiesi, the hedge fund analyst known for her aggressive information gathering, is probably a cautionary tale of some sort. But I'm not sure what.

You could see it as a classic pulp story of a straight-arrow company man being seduced by an alluring femme fatale. For some, it may be that simple. In any case, it's a tragedy. Careers have been ruined. Some people set out do harm; others were sucked in. As Moffat deepened his relationship with Chiesi, he lost perspective on what she wanted most: information. No doubt there's more than one executive who speaks candidly about office matters with friends. But are those friends hedge fund analysts?

There's also a lesson here for hedge funds (hedge fund news). Do you really want your analysts to act in this manner? Does your firm subtly condone this information-at-any-cost behavior? Or is this just standard Wall Street practice, one that tends to be richly rewarded. In any case, Moffat pleaded guilty to securities fraud in March. He will be sentenced in September. 

For more:
- here's a lengthy takeout from Fortune with details about their relationship

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