Trader who blamed affair for crimes is sentenced

The News Leader

July 20, 2011 5:02:24 AM PDT
A New York hedge fund trader who says her boss manipulated her into engaging in insider trading during their 20-year affair is awaiting her sentencing after admitting her crimes.

Danielle Chiesi is set for sentencing Wednesday. Lawyers have asked for leniency, blaming manipulation by her boss. He pleaded guilty and is serving a two-year, three-month prison term.

She pleaded guilty in January to insider trading charges in what prosecutors have said was the biggest hedge fund insider trading case in history. Her voice was prominent on audio tapes played at the trial of one-time billionaire Raj Rajaratnam. He was convicted in May after prosecutors blamed illegal trades on more than $50 million in profits. He awaits sentencing.

Chiesi worked at the New Castle fund.