Sex, truth and taped conversations.
Not only does sex sell, it collects info.
Under covers, an IBM executive gave insider “pillow talk” information that benefited hedge funds Galleon Group and New Castle Partners
Robert Moffat, 53 years old, was IBM’s senior vice president for technology and regarded as a possible future chief executive of the company until prosecutors accused him of passing along confidential information on IBM and other companies as part of an alleged insider-trading conspiracy that benefited hedge funds Galleon Group and New Castle Partners.
Authorities say that Moffat discussed coming IBM and Sun Microsystems earnings announcements with Danielle Chiesi, who worked at New Castle and has been accused of trading on the information.
Mr. Moffat, a veteran IBM executive who was close to CEO Samuel Palmisano, is the highest-ranking corporate official charged in the insider-trading case that federal investigators built based on wiretaps of Galleon partner Raj Rajaratnam and Ms. Chiesi. Chiesi was a sex pot who wore revealing clothing as just one of her tools used to relentlessly gather information about the tech stocks she followed. The SEC has charged that Ms. Chiesi traded on the information she got from Moffat and others. The scheme reportedly netted $20 million in improper profits.
Moffat pleaded guilty in March to conspiracy and securities fraud at a hearing before U.S. Magistrate Judge Frank Maas in Manhattan. He was the 11th person to plead guilty to criminal charges in the investigation.
Danielle was relentless (in getting info, too.)
Moffat admitted to providing tips to Danielle, a former consultant for New Castle Funds LLC, involving inside information about Advanced Micro Devices Inc., IBM and Lenovo Group Ltd. between August 2008 and October 2008. Mr. Moffat said Ms. Chiesi was a “friend.” (A friend that he had sex with.) “I knew the information I provided would be helpful to her in her job,” Moffat has said.
Blond, blue-eyed, and petite, Danielle Chiesi grew up in Binghamton, New York, where she won the regional Southern Tier beauty contest at age 15. Early on, she found she had the looks and the personality to motivate men to give her what she wanted.
In 1988 Ms. Chiesi got a job as an analyst at a brokerage firm. Ms. Chiesi developed a strong fascination with the powerful men who ran the companies in the industries that she covered.
Some time in 2003, Chiesi and the long-time-married Moffat began sleeping together. Moffat gave up not only information about his company, IBM, but other firms in the tech industry as well.
When Danielle whispers, the SEC listens.
Unfortunately for the lovers, the feds were listening in. Chiesi’s phone was tapped and some conversations concerning the insider information were recorded.
How good the sex was has not yet been reported. I doubt Robert Moffat would say it was worth it.