prison

This afternoon, Danielle Chiesi will report to a West Virginia prison for a 30-month stay, for her role in the Galleon insider trading case, wherein she passed valuable tips on to Raj Rajaratnam after the tech execs she worked closely with passed her a few of their own. Chiesi will be bunking at Federal Prison Camp Alderson (former home of Martha Stewart, where “women hide sugar packets and crackers in their socks and conceal larger items like eggs under their shirts”), and while Bloomberg reports that the former beauty queen/Newscastle analyst won’t be living alongside ‘sadistic crack-selling lesbian rapists‘ (“It’s more college campus than Chained Heat, the 1983 exploitation film about women in jail” we’re assured), there may still be a few aspects of prison life about which D-Chi (“they give each other nicknames,” says one former resident) will be less than thrilled. Such as: Read more »

Raj Rajaratnam Gets 11 Years, Needs A Kidney


The defense had asked for 6.5 to 8 years on account of 1) the fact that, they say, Raj only made $7.4 million off his trades and 2) the “unique constellation of ailments ravaging his body” that would result in him dying behind bars if given a sentence “anywhere near” the prosecution’s request for 19.5 to 24 years. Read more »

At some point tomorrow, Raj Rajaratnam will be sentenced for the 14 counts of securities fraud and conspiracy he was found guilty on in May. The prosecution, which claims the Galleon founder netted “at least” $50 million in ill-gotten gains, has requested he go away for anywhere between 19 years and seven months to 24 1/2 years, while the defense, which argues Raj scored a mere $7.4 million, would prefer 6 1/2 to 8 years. To that end, the Rajaratnam team led by attorney John “How long are you going to suck [U.S. Attorney for the Southern District of New York] Preet’s teat” Dowd has 1) asked friends of Raj to send character letters to Judge Howell highlighting what a great guy he is and 2) made the bold statement that Rajaratnam is suffering from a “unique constellation of ailments ravaging his body” and that he will most certainly “perish if given a lengthy prison term.” To date, individuals vaguely and otherwise connected to the Galleon case have been sentenced to 2.5 years (Danielle Chiesi), 3 years (Emanuel Goffer), 4 years (lobster fiend) 10 years (Zvi Goffer). So! Read more »

Back in May, Rengen Rajaratnam, little brother of Raj, made a simple request. For friends of the Galleon founder to send character letters to the judge in an effort to convince him to be lenient in sentencing. Rengen helpfully included some links on the proper formatting to use when drafting such missives and considering all the lives Raj had touched, it shouldn’t have proved too difficult a task. Was it so much to ask that people recall, for instance, the tears of joy he brought to their eyes when he paid an employee to allow herself to be tased? Or the midget gags? Apparently yes because his legal team has been forced to turn to plan B: breaking the news that Raj is dying of a disease the likes of which you can’t even imagine. Read more »

  • 28 Jun 2011 at 2:07 PM

Bernie Madoff Feels Like A Piñata

When one is serving a 150 year sentence for running a massive Ponzi scheme, he tends to find himself with time on his hands to think about things. Take Bernie Madoff, for example. He has a job in the joint (working in the commissary) and he gets in daily walks on the track but other than that, the hours are usually spent reflecting. His reflection time over the last couple years has lead to a few big conclusions and chief among them? That he’s been on the receiving end of a bum rap, in more ways than one, which he’s mentioned during several stops on his Legitimate Years Tour. In February, he griped to New York:

“Does anybody want to hear that I had a successful business and did all these wonderful things for the industry?” Bernie continued. “And got all these awards? And so did my family? I did all of this during the legitimate years. No. You don’t read any of that.”

Last month, he reminded New Yorker reporter Jeffrey Toobin that he “was worth a billion dollars before any of this nonsense started” but does anyone ever mention that? No they only care about the net worth accrued from his ill-gotten gains. On the same tour stop, he also suggested that he should be getting credit for his later work (the legitimacy of which is still an open-ended question in his mind), if only for the fact that its complexities could only be understood by the most sophisticated of investors (him).

Still, he speaks about his financial acumen with unmistakable pride. “The strategy that I was using for them, whether it was real or not, was not something that anyone would understand if you were not an expert,” he said. As he put it in an e-mail, “Fred was not [at] all stock market savvy and Saul was not really either. They were strictly Real Estate people. Although I explained the Strategy to them they were not sophisticated enough to evaluate it properly, nor were most of my other individual clients. They were not in a position to perform the necessary due diligence and did not have access to necessary financial info or records.”

Which leads us to Berns’ latest. In an interview with the Times he reasons that he got such a raw deal because the judge, like all of his feeble-brained haters, doesn’t understand how “the industry” works. Read more »

Remeber Toby Carroll? To recap, he’s a New Zealand-born real estate analyst for HSBC who’s been stationed in Dubai for the last several years. In January, he was jailed after his ex-girlfriend, Priscilla Ferreira, found him and a new girl, Danielle Spencer, in his apartment and proceeded to start slashing curtains, furniture, etc, and go after the Danielle with a knife.** The police were called and all three were sent downtown because in Dubai, sex outside marriage is illegal. After a week in the clink Carroll, who friends describe as “a fun-loving party boy who was dedicated to his job, a snappy dresser who liked women but wasn’t womanizer,” was released (as were the ladies who became friends after being forced to share a mattress in the women’s cell at Bur Dubai police station. Hopefully Carroll’s made the most of his freedom over the last 6 months, because he’s set to be sent back after receiving his sentencing last week. Read more »

Winifred Jiau, the Primary Global consultant who worked closing with, among others, ex-SAC portfolio manager Noah Freeman, was found guilty on insider trading charges this morning, after two days of jury deliberations. The 43 year-old Jiau now faces up to 20 years for securities fraud and an additional five years for conspiracy. For the math whizzes in the group, that means she’ll be a mere 68 years old when sprung free. If you’ve been keeping up, you know even those who Wini drove to fantasies of killing her and making it look like an accident (no names: Noah Freeman) couldn’t deny she was the best at providing material non-public information and since there’s no reason to believe she won’t keep her skills sharp while in the joint, anyone looking to hook up with her in 2036 would be wise to write the following down. Read more »