Danielle Chiesi, convicted of insider trading as part of the Galleon Group LLC case, agreed to pay $540,000 to settle related allegations by the U.S. Securities and Exchange Commission.

Chiesi gained insider trading information from former IBM executive Robert Moffat, who had many links to the Research Triangle. Considered a possible successor to current IBM Chief Executive Officer Sam Palmisano, Moffat lost his job at Big Blue and later pleaded guilty to providing Chiesi with information.

Moffat said he was “played” by Chiesi. (Read more here.)

The Wall Street journal describes Chiesi as a “former beauty queen.”

A final judgment in the Chiesi case, signed by U.S. District Judge Jed S. Rakoff in New York, was posted on the court’s electronic docket today with Chiesi’s signed consent dated June 29.

In addition to her liability for $500,000 in principal and $40,535 in interest, Chiesi agreed not to violate SEC rules prohibiting her from directly or indirectly engaging in fraudulent or deceptive practices including insider trading.

Chiesi, 45, who was an analyst at New Castle Funds LLC, and Mark Kurland, New Castle’s co-founder, both pleaded guilty in connection with a government investigation of hedge-fund insider trading centered on Galleon and its co-founder, Raj Rajaratnam.

The SEC first sued Rajaratnam, Chiesi, Kurland and three other people in October 2009. Her agreement resolves allegations contained in a revised complaint filed last year.

Chiesi’s lawyer, Alan Kaufman, today declined to comment on the agreement. John Nester, a spokesman for the SEC, didn’t immediately respond to a telephone message seeking comment.

‘Deeply Ashamed’

On Jan. 19, Chiesi pleaded guilty to three counts of conspiracy, telling U.S. District Judge Richard Holwell she was “deeply ashamed” of what she had done.

Claiming her former New Castle boss used their “toxic” sexual relationship to manipulate her into feeding him inside tips, last month she asked Holwell to sentence her to less prison time than the 27 months Kurland received last year for his role in the Galleon scheme.

Prosecutors have said she should get from 37 to 46 months in prison when she’s sentenced on July 20.

Kurland, 62, is serving his sentence in Otisville, New York, according to the Federal Bureau of Prisons website.

Prosecutors said that Chiesi received inside information from sources including Hector Ruiz when he was chairman of Advanced Micro Devices Inc. (AMD), and Robert Moffat, then an executive at International Business Machines Corp. (IBM) She passed the tips to Kurland and to portfolio managers including Rajaratnam, Steven Fortuna, Richard Choo-Beng Lee and Ali Far.

Ruiz hasn’t been charged criminally. Moffat, Fortuna, Lee and Far have pleaded guilty. Rajaratnam was convicted May 11 of all 14 criminal counts against him.

‘Played Him’

In his own sentencing memorandum, Moffat, who said he had an intimate relationship with Chiesi, claimed she “played him” to obtain inside information.

“Chiesi operated largely on her own, and she was sufficiently experienced and sophisticated that she knew precisely what she was doing,” the government argued in its sentencing memorandum. “In short, she was not merely Kurland’s minion.”

Get the latest news alerts: Follow WRAL Tech Wire at Twitter.