Thursday, 24 July 2014
Last updated 22 sec ago
Jul 25 2011 | 1:12pm ET
The lawyer for former SAC Capital Advisors trader and admitted insider-trader Donald Longueuil on Friday took issue with prosecutors' characterization of his client—and their request for a sentence of almost five years in prison.
Craig Carpineto urged U.S. District Judge Jed Rakoff to impose a sentence significantly shorter than the 46- to 57-month term suggested by prosecutors last week. According to Carpineto, Longueuil's participation in an insider-trading ring was "aberrational" and noted that his client "has acknowledged his guilt."
"Don hopes the court will consider the man as a whole, and not the caricature of a greedy yuppie portrayed by the government and the press," Carpineto said.
Longueuil pleaded guilty in April to securities fraud and conspiracy, admitting that he traded on confidential information he received from fellow hedge fund manager Samir Barai. Longueuil said he traded illegally for about four years, including during his time at SAC Capital Advisors, and admitted that he also traded tip with former SAC trader Noah Freeman. In exchange for his plea, he was spared an obstruction of justice conviction for destroying evidence after Barai's hedge fund was raided in November by the Federal Bureau of Investigation.
But Longueuil, who has also agreed to pay $1.25 million in forfeitures, did not trade on insider information in his personal accounts or pass tips on to friends and family outside of the insider-trading ring, Carpineto argued.
"Living in the Google age, Internet searches will always identify him first and foremost as an 'insider trader,' a convicted felon, and associate him with greed, selfishness and criminality," Carpineto wrote. "As a result, regardless of what the court determines to be adequate, Don has already imposed upon himself a 'life' sentence of sorts."
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…