The first person to go to prison in the ongoing Galleon insider trading case is former IBM executive Bob Moffatt, who plead guilty to leaking insider information.
Moffatt will serve 6 months in prison for the information he leaked to Danielle Chiesi.
Moffatt has said he realised that he was “played” by Chiesi. He initially felt he was only giving inside information to a close friend (a mistress), not realising that he was actually being duped by calculated scheme.
The main player in the case — hedge fund bigwig Raj Rajaratnam — is still a ways away from trial.