Sunday, 1 May 2016
Last updated 1 day ago
Jul 22 2011 | 12:16pm ET
Former SAC Capital Advisors trader Donald Longueuil should spend as much as five years in prison for insider-trading, prosecutors said in a sentencing memorandum filed yesterday.
Longueuil pleaded guilty in April to securities fraud and conspiracy, admitting that he traded on confidential information he received from Barai Capital Management's Samir Barai. In exchange for his plea, he was spared an obstruction of justice conviction for destroying records and evidence after Barai Capital was raided by the Federal Bureau of Investigation in November.
Longueuil had discussed how he destroyed the evidence in a taped phone call with a fellow former SAC trader, Noah Freeman, who was cooperating with investigators.
U.S. District Judge Jed Rakoff should impose a sentence of between 46 and 57 months on July 29, prosecutors wrote, "to deter Wall St. professionals like Longueuil from engaging in similar offenses and to restore integrity to the capital markets." Longueuil's legal team will file their own sentencing memorandum today.
Longueuil, who worked at SAC for two years, including during the period he was allegedly trading on confidential information, also traded tips with Freeman. Freeman, in turn, got some of his information from former Primary Global Research consultant Winifred Jiau, who was convicted of insider-trading last month.
Freeman and Barai have also pleaded guilty in the case, as have nine others. Just one of the 14 people arrested in the case, PGR's James Fleishman, remains to be tried.