In the high-power, high-risk game of details trading, Danielle Chiesi has become “a confirmation of all (individuals have) suspected is wrong with Wall Street and the hedge fund industry,” as outlined by Fortune. Charged with securities fraud and conspiracy, Bob Moffat, previous IBM exec, and Danielle Chiesi, are facing trial.
Danielle Chiesi’s Wall Street world
Owner of the Galleon hedge fund, Raj Rajaratnam, employed Danielle Chiesi as an information-gatherer. Insider details was Danielle Chiesi’s entire stock in trade. Danielle Chiesi developed and maintained a “harem” of inside sources at various tech companies. 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. On Wall Street, Danielle was known as a strong seductress who could get data out of most men.
The crimes of Danielle Chiesi
By developing relationships with top execs, Danielle was not doing anything illegal—but once she had the info, she did illegal things with it. By gathering and passing on inside information about tech stocks, Chiesi was allegedly participating in insider trading. Chiesi is on trial right now, after pleading not guilty to the charges of insider trading.
Why insider trading is a crime
Insider trading can be a very difficult crime to both prove and understand. Stock markets are based on ideas of fairness – everyone betting with the same information. When people get inside data from individuals who work at the business, they are able to purchase or sell stocks before the information is public knowledge. Put simply, Danielle Chiesi was cheating the system. This is the exact same crime that Martha Stewart was convicted of. Danielle Chiesi proves that even tight-lipped execs can be seduced out of info. Is a financial system that can be gamed this effortlessly one that we should be putting our money into?
