The IBM man at the centre of an insider trading row, Robert Moffat, was having an “intimate relationship” with accused tipster Danielle Chiesi.
Moffat admitted to securities fraud and conspiracy in March and is due to be sentenced in July. He faces six months in prison.
However Moffat's relationship with the tipster at the centre of the row was discussed during the sentencing of another person involved in the case - Mark Kurland, a co- founder of New Castle Fundsand Chiesi’s former boss.
Kurland's defence lawyer said his client Kurland deserved no more prison time than Moffat.
He added that Moffat was more culpable than Kurland because Moffat, whom he called one of the top five executives at IBM, leaked confidential information while Kurland only traded on tips that originated with Moffat and passed through Chiesi.
Assistant U.S. Attorney Reed Brodsky told US District Judge Victor Marrero in Manhattan that Kurland was motivated by greed while Moffat had an “intimate relationship” with Chiesi.
It was up to the Judge as to whether he thought that the prospect of sexual favours was worse motivation than greed.Kurland, 61, pleaded guilty in January for his role in the scheme. Marrero sentenced him to 27 months in prison, so obviously greed is a worse motivator than sex in the eyes of the law.
More than 21 people have been charged since October in the case. Both Chiesi and Rajaratnam deny wrongdoing. It was already traded before they got there or something.
Moffat admitted in court in March that in 2008 he leaked information to Chiesi about IBM, Lenovo and AMD. He told Chiesi about disappointing sales of IBM servers, a pending restructuring at AMD and earnings at Lenovo.