Lawyer Seeks Leniency For Ex-SAC Trader

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."


In Depth

Creating An Offshore Hedge Fund Dream Team: The Seven Key Players

Jun 26 2015 | 6:47am ET

If you want to set up an offshore hedge fund, like any great team, you’re only...

Lifestyle

Hedgies Set to Compete in Wall Street Decathlon

Jun 8 2015 | 12:37am ET

The Wall Street Decathlon — a 10-event physical challenge that will crown “Wall...

Guest Contributor

6 Essential Principles To Balance Your Investment Risk

Jun 26 2015 | 10:07am ET

In this article, financial expert Greg Silberman explores how to hedge a private...

 

Editor's Note