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. Danielle Chiesi and former IBM exec Bob Moffat are charged with securities fraud.
Article source: 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 traded mostly and primarily in details. While she was working for Galleon, Danielle targeted various companies and developed relationships with people inside those companies. By dressing very seductively and telling men she loved “sex, stocks, and sports,” Danielle was able to develop these relationships, as outlined by Fortune. On Wall Street, Danielle was known as a strong seductress who could get data out of most men.
What Danielle Chiesi is accused of
By developing relationships with top execs, Danielle was not doing anything illegal—but once she had the information, she did illegal things with it. By passing this insider data along to her employer, Chiesi was participating in insider trading. She has pleaded not guilty to charges of insider trading, and also the trial is currently under way.
How insider trading is a crime
It could be very tough to understand how insider trading damages the stock market and everyday people. Stock markets are based upon on ideas of fairness – every person betting with the same information. Trades are unfair when somebody making the trade has information about a business that the public doesn't know. In other words, people like Danielle Chiesi cheat the system. Martha Stewart was convicted of this exact same crime. Data can be seduced out of executives, especially by younger women who claim to be into older men. Is a financial system that can be gamed this very easily one that we should be putting our money into?
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