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&lt;p&gt;In the highly-publicized insider trading case involving hedge fund investor and Galleon co-founder Raj Rajaratnam, a co-defendant named Danielle Chiesli recently pleaded guilty to the charge of handing over confidential information to Raj Raj and others. Chiesli&#39;s sentencing has been set for the second week of May; she&#39;s expected to serve between three and four years behind bars.&lt;/p&gt;&lt;p&gt;&lt;img class=&quot;embeddedObject&quot; src=&quot;http://content.screencast.com/users/dloos/folders/Jing/media/a99d8c53-5ec8-49b6-9d45-7a4f78bf6478/00000144.png&quot; border=&quot;0&quot; alt=&quot;&quot; width=&quot;223&quot; height=&quot;257&quot; align=&quot;left&quot;&gt;But for every Chiesli, historical statistics show, there&#39;s another insider trader who will never serve time.&lt;/p&gt;&lt;p&gt;&quot;Almost half of the 43 defendants who were sentenced in Mahattan federal court in the past eight years for insider trading avoided a prison term.&quot; And &quot;19 who were sentenced since 2003, or 44 percent, weren&#39;t incarcerated ... Of the remainder, the average defendant got a prison term of 18.4 months.&quot;&lt;/p&gt;&lt;p&gt;As you might suspect, the more money made in the trade, the longer the sentence (Chiesli&#39;s firm reportedly pocketed between $1 million and $2.5 million; Raj Raj&#39;s Galleon has been estimated to have banked $45 million).&lt;/p&gt;&lt;p&gt;If you&#39;ve been accused of insider trading, the way to avoid jail time is rather easy: cooperate with the courts. If you do, chances are you&#39;ll be among the lucky half who won&#39;t have to worry about going down for the Dove.&lt;/p&gt;&lt;p&gt;&quot;Defendants who cooperate with prosecutors often win leniency, as do those who are ill or must care for ailing relatives.&quot; &quot;If you cooperate, that&#39;s going to be your biggest driver,&quot; according to Kirby Behre, a partner at Paul, Hastings, Janofsky &amp;amp; Walker LLP and co-author of &lt;em&gt;Federal Sentencing for Business Crimes&lt;/em&gt; (a word of warning: don&#39;t try to buy this two-volume book at home; it costs more than $1,300).&lt;/p&gt;&lt;p&gt;Take the 2007 case against Mitchel Guttenberg, an institutional client manager at UBS Securities LLC. &quot;None of the men who cooperated with prosecutors was sentenced to prison [but] a Bear Stearns trader who didn&#39;t cooperate with prosecutors got a 63-month term.&quot;&lt;/p&gt;&lt;p&gt;To be sure, copping a plea doesn&#39;t mean you&#39;re automatically presented with a Get Ouf Jail Free card. In his case, Guttenberg was sentenced to serve more than six years. And, of course, there&#39;s Chiesli&#39;s projected three to four.&lt;/p&gt;&lt;p&gt;So, to summarize: if the heavy hand of the law catches you with your pants down, and the idea of a handful of years behind bars is not your idea of graduate school, it&#39;s best to confess.&lt;/p&gt;&lt;p&gt;(Bloomberg)&lt;/p&gt;

Derek Loosvelt

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