SEC settlement reached by insider trading convict

AP News
Posted: Jul 13, 2011 5:27 PM
SEC settlement reached by insider trading convict

A woman who admitted her role in a massive insider trading case has agreed to pay $540,000 to settle civil charges in New York brought by the Securities and Exchange Commission.

Hedge fund manager Danielle Chiesi (kee-AY'-zee) will be sentenced next week after pleading guilty in what prosecutors have said was the biggest hedge fund insider trading probe in history.

The court record Tuesday showed that 45-year-old Chiesi will pay $540,534 to satisfy civil charges. Chiesi pleaded guilty to criminal insider trading charges in January. She was heard on audio tapes played at the trial of one-time billionaire Raj Rajaratnam, who was convicted in May of insider trading.

Prosecutors said the probe resulted in more than $50 million in illegal profits. More than two dozen people were convicted.