In the high-power, high-risk game of info trading, Danielle Chiesi has become “a confirmation of all (individuals have) suspected is wrong with Wall Street and the hedge fund industry,” according to Fortune. Charged with securities fraud and conspiracy, Bob Moffat, previous IBM exec, and Danielle Chiesi, are facing trial.
Source for this article: Danielle Chiesi on trial for insider trading by Personal Money Store
The story of Danielle Chiesi
Danielle Chiesi was an employee of Raj Rajaratnam, head of the Galleon hedge fund. Danielle Chiesi's stock in trade was info. As an info gatherer for Galleon, Danielle Chiesi maintained a “stable” of sources at companies that she was targeting for inside details. By targeting older men, wearing short skirts and low-cut shirts, and telling them all that “I love the three S’s, sex, stocks and sports” she was able to get inside stock details for her employer, says Fortune. Danielle Chiesi is a former beauty queen and sorority girl who was known on Wall Street as a serious seductress.
The accused crimes of seductress Danielle Chiesi
While targeting and sleeping with lots of high-profile executives is not technically illegal, what she did with some of the info was. By gathering and passing on inside info about tech stocks, Chiesi was allegedly participating in insider trading. She has pleaded not guilty to charges of insider trading, and also the trial is presently under way.
How insider trading is a crime
It can be very tough to understand how insider trading damages the stock market and everyday people. The understanding that everyone has the exact same details is the basis of a fair stock market. When individuals get inside information from people who work at the business, they are able to purchase or sell stocks before the data is public knowledge. Put simply, Danielle Chiesi was cheating the system. Martha Stewart was convicted of this exact same crime. The story of Danielle Chiesi is most compelling because it proves that even the most quiet of tech execs can, under the right circumstances, give up information they know they’re not designed to. Is a financial system that could be gamed this effortlessly one that we should be putting our money into?
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