Earlier this summer federal prosecutors charged ex-Citigroup VP Gary Foster of embezzling millions from the bank into personal accounts and yesterday he plead guilty to one count of bank fraud. The legally blind banker now faces a maximum of ten years in the slammer for making off with $22.9 million between September 2003 and June 2011. more ›

Danielle Chiesi, a former beauty queen who became a hedge fund trader, was sentenced to 30 months in prison for her role in a multi-million-dollar insider trading scheme. Chiesi, who once said insider trading was "like an orgasm," will also have to serve two years of supervised release and 250 hours of community service, plus pay a $25,000 fine. It was under the recommended 37-to-47-month sentence from prosecutors, so maybe that's why she was smiling outside court. more ›

A hedge fund founder and five other people were arrested in what the federal authorities say is the "biggest insider trading scheme ever involving a hedge fund" (NY Times) and the "biggest insider-trading ring in a generation" (Wall Street Journal). Those involved allegedly made $20 million on inside information about stocks like Hilton, IBM, Google and Advanced Micro Devices. more ›

Court papers reveal that Frank DiPascali, who said was the right hand man of $65 billion Ponzi schemer Bernard Madoff (pictured), will plead guilty. DiPascali, the chief financial officer of Madoff Investment Securities, waived his right to an indictment and will plead guilty to to criminal charges on Tuesday. Former federal prosecutor Andrew Hruska tells Bloomberg News, "It would be reasonable for him to cooperate. The evidence against Madoff was strong enough for Madoff to go down without a fight. That would make it very difficult for someone in DiPascali’s position to fight the charges," and notes that DiPascali has his usefulness, "He seems to have been the key player in executing the decisions that Madoff made." A source tells Newsday that DiPascali "was in charge of all the ladies who sent out [trading] confirmations. He had contact with the [hedge] funds." A spokeswoman for the law firm representing DiPascali—Bracewell & Giuliani LLP (yes, that Giuliani—had no comment. more ›