Factbox: Prison terms imposed in broad insider trading case
(Reuters) - Galleon Group hedge fund founder Raj Rajaratnam, 54, will learn his sentence in a New York court on Thursday for his insider-trading conviction in May on 14 securities fraud and conspiracy charges.
The following are some of the prison sentences imposed on other defendants in the government's sweeping U.S. insider-trading case. The prosecution was marked by the widespread use of FBI phone taps of defendants' phone conversations:
Zvi Goffer - 10 years. The former stock trader, who worked at Galleon for nine months before starting his own firm, Incremental Capital, was told by sentencing Judge Richard Sullivan that by going to trial "You gambled and you lost." Prosecutors described Goffer, 34, as the ringleader of a network that stole secrets about corporate mergers.
Craig Drimal - 5-1/2 years. Drimal, 55, who worked in Galleon's office but was not an employee, pleaded guilty to obtaining corporate secrets from Goffer and others. He made more than $7 million in illicit profits. Judge Sullivan also ordered him to pay $11 million in restitution.
Danielle Chiesi - 2-1/2 years, handed down by Judge Richard Holwell, who will also impose sentence on Rajaratnam. Chiesi, 45, is a former high school beauty queen who became a hedge fund trader. She conspired with Rajaratnam and others, including long-time lover and boss at New Castle Funds, Mark Kurland. She pleaded guilty to conspiracy charges.
Mark Kurland - 2 years, three months. Kurland, 62, managed $1 billion at New Castle Funds and pleaded guilty to criminal charges. Judge Victor Marrero said Kurland "became a joiner, surrendering to the spree of the financial market's virtual mob mentality that nearly brought down this nation's economy in the quest for ever bigger and faster gains."
Winifred Jiau - 4 years. A technology consultant who was paid $208,000 over two years by expert-network firm Primary Global Research, so-called because it matched business experts with hedge funds. Taiwan-born Jiau, 43, was the first such consultant to go to trial on insider-trading charges. Hedge funds made millions on her information, and sentencing Judge Jed Rakoff said the crime "requires some meaningful sentence."
The cases are USA v Rajaratnam et al No. 09-01184, USA v Goffer et al No. 10-00056 and USA v Winifred Jiau et al 11-00161 in U.S. District Court for the Southern District of New York.
(Compiled by Grant McCool; Editing by Martha Graybow and Bernard Orr)
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