17-N-Allylamino-17-Demethoxygeldanamycin in Treating Patients With Chronic Phase Chronic Myelogenous Leukemia That Did Not Respond to Imatinib Mesylate

DISEASE CHARACTERISTICS: * Diagnosis of chronic phase chronic myelogenous leukemia * Philadelphia chromosome (Ph)-positive disease * Hematologic resistence after treatment with imatinib mesylate (400 mg per day or maximum tolerated dose \[MTD\]) as defined by 1 of the following criteria: * Loss of complete hematologic response, defined as WBC count OR platelet count \> upper limit of normal (ULN) on 2 separate occasions at least 2 weeks apart that cannot be attributed to other etiologies * Absolute increase of ≥ 30% in Ph-positive cells while on a stable dose of imatinib mesylate for at least 6 months\* NOTE: \*Patients meeting this criterion are not eligible for enrollment into the expanded MTD cohort * Less than 15% blasts in peripheral blood or bone marrow AND \< 30% blasts and promyelocytes in peripheral blood or bone marrow PATIENT CHARACTERISTICS: Age * 18 and over Performance status * ECOG 0-2 Life expectancy * At least 6 months Hematopoietic * See Disease Characteristics Hepatic * Bilirubin \< 1.5 times ULN (3 mg/dL for patients with Gilbert's syndrome) * ALT or AST \< 2 times ULN * No known hepatitis positivity Renal * Creatinine \< 1.5 times ULN OR * Creatinine clearance \> 60 mL/min Cardiovascular * No New York Heart Association class III or IV cardiac disease Pulmonary * No severe debilitating pulmonary disease, including any of the following: * Dyspnea at rest * Significant shortness of breath * Chronic obstructive pulmonary disease Other * Not pregnant or nursing * Negative pregnancy test * Fertile patients must use effective contraception during and for 1 month after study participation * No known HIV positivity * No psychological or social condition that would preclude study compliance * No addictive disorder that would preclude study compliance * No family problems that would preclude study compliance * No known allergy or sensitivity to soy or other excipient components of study drug * No other illness or condition that may affect safety of study treatment or evaluation of study endpoints PRIOR CONCURRENT THERAPY: Biologic therapy * More than 2 weeks since prior interferon * No concurrent interferon Chemotherapy * More than 2 weeks since prior cytarabine (4 weeks for doses \> 100 mg) * More than 6 weeks since prior busulfan * No concurrent cytarabine * No concurrent hydroxyurea during the second study treatment course and beyond * No concurrent anagrelide during the second study treatment course and beyond Endocrine therapy * Not specified Radiotherapy * Not specified Surgery * Not specified Other * More than 2 days since prior imatinib mesylate * More than 1 week since prior and no concurrent drugs that alter metabolism by cytochrome P450 3A4, including the following: * Diltiazem * Nifedipine * Verapamil * Fluconazole * Itraconazole * Ketoconazole * Lovastatin * Simvastatin * Indinavir * Nelfinavir * Ritonavir * Alprazolam * Diazepam * Midazolam * Triazolam * Phenobarbital * Phenytoin * Carbamazepine * Azithromycin * Clarithromycin * Erythromycin * Rifampin * Rifamycin * Astemizole * Terfenidine * Amiodarone * Cimetidine * Cisapride * Cyclosporine * Grapefruit juice * Hypericum perforatum (St. John's wort) * Warfarin * More than 4 weeks since prior investigational drugs and recovered * No concurrent imatinib mesylate