As we’ve previously discussed, Danielle Chiesi herself as admitted she was able to get a leg up on other insider traders by making sure to have both legs up in the air while in the company of some highly placed tech executives. Having said that, she knew that with others, like the guys not interested in opening their ‘hearts‘ to women besides their wives, a different tactic was necessary to get them to spill.
“They’re gonna guide down,” Chiesi told Raj Rajaratnam, according to a wiretap of their conversation on July 24, 2008, six days before Akamai made its public announcement. “I just got a call from my guy. I was talking about the family and everything and then he said, people think it’s gonna go to 25.”
“Honey, you know what, it’s just for us,” Chiesi continued, according to the tape. “We go slow, keep shorting every day.” “I played him like a finely tuned piano,” she added.
It’s one thing to deploy one’s “sexuality to build sources at male-dominated tech companies” but it’s quite another to know when to switch gears and ask questions about how their kids are doing, all the while waiting, knowing what’s coming. That Chiesi had such skills was not the only thing that stuck out to Raj, however. He was equally if not more so impressed with the high moral character she demonstrated while obtaining material non-public information.
Akamai announced its lower forecast on July 30, 2008. At 5:30 p.m. that day, Rajaratnam called Chiesi to say “thank you,” according to another tape played today in which Rajaratnam says he sold at least 150,000 Akamai shares short. The stock, which closed at $31.25 on July 30, opened then next day at $23.34.
“You did it in such a classy way,” Rajaratnam said in the taped call. “The way you worked the relationship.”
“It’s a conquest,” an excited Chiesi responded, according to the tape. “It’s a conquest. It’s mentally fabulous for me.”
Chiesi, who lives in New York, then said she was on her way to a meeting at the Chinese consulate. “I want to own China,” Chiesi told Rajaratnam.