Court papers name Akamai tipster in insider-trading investigation

Federal court papers name a former Akamai Technologies employee who allegedly revealed insider information to stock traders who were later charged with reaping millions of dollars from the information in what the FBI calls the largest hedge fund insider-trading case in history.

Kieran Taylor, the former senior director of product marketing at content delivery network services company Akamai, was named in court documents as giving information to members of New Castle Funds and Galleon Management, who traded the company’s stock to make millions, according to a report in the Boston Globe and an earlier press statement from the Department of Justice.

CRIME LOG: EMC testing engineer stole nearly $1M in duffel bag

Insider information used by the traders also came from sources within other companies including Intel, IBM and Polycom, the DoJ says, and was used to make profits from the sale of stocks in Akamai, AMD,  Clearwire, Google, Hilton Hotels, People Support and Polycom.

Galleon Group employees made more than $25 million using similar insider information from other companies in combination with the Akamai information. The case is part of a larger investigation of insider trading that gathered up former IBM executive Robert Moffat.

In a press release at the time charges were brought against the Galleon Group employees in October 2009, an unnamed Akamai executive was quoted as offering information to one of the traders, Danielle Chiesi of New Castle, during a wiretapped phone call.

Someone identified in an earlier press statement as an Akamai executive said, "Danielle, I have a major present for you." Chiesi asked what he was talking about, and the Akamai executive replied, "Information." Chiesi said, "Well that, that is a great present."

An earlier phone call between Chiesi and her boss, a top New Castle executive named Mark Kurland, was quoted as follows:

Chiesi: "Do you want me to call [the Akamai Executive] up? It's a pretty [expletive] scary thing to do."

Kurland: "Call him.... Let him talk."

Kurland pleaded guilty to two counts of securities fraud last January. Chiesi has pleaded innocent and a trial is expected in April.

The insiders doing the trading were shorting the stock – borrowing it, selling it, waiting a period to buy the same number of shares back at a lower price, returning the stock to the lender and pocketing the profit. The insider information is key, because the insider trader wants assurance that the stock price will actually drop.

Read more about data center in Network World's Data Center section.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags business issuesGoogleIBMpolycomClearwireintelinvestmentsLAN & WANemccorporate issues

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Tim Greene

Network World
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Matthew Stivala

HP OfficeJet 250 Mobile Printer

The HP OfficeJet 250 Mobile Printer is a great device that fits perfectly into my fast paced and mobile lifestyle. My first impression of the printer itself was how incredibly compact and sleek the device was.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?