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Danielle Chiesi Sentenced To Prison In Insider Trading Case

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Danielle Chiesi (L) (credit: AP Photo/Andrew Burton)

Danielle Chiesi (L) (credit: AP Photo/Andrew Burton)

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NEW YORK (CBSNewYork/AP) — A New York hedge fund trader who says her boss manipulated her into engaging in insider trading during their 20-year affair was sentenced Wednesday to 2 1/2 years in prison.

“I knew there was a punishment for breaking the law,” said Danielle Chiesi, clutching a tissue with her hands clasped behind her as she was sentenced in Manhattan federal court. She also was ordered to serve 250 hours of community service and to pay a $25,000 fine.

Judge Richard Holwell said he wanted to send a warning to Wall Street; but he still gave her less than the 3 to 4 years that prosecutors had sought.

Her boss pleaded guilty and is serving a two-year, three-month prison term.

Chiesi 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 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.

(TM and Copyright 2011 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2011 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)

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