Ex-SAC Manager Gets 30 Months In Expert-Network Case

Aug 1 2011 | 1:25pm ET

A former SAC Capital Advisors portfolio manager has been sentenced to two-and-a-half years in prison for his role in an insider-trading circle.

Donald Longueuil, who worked at SAC for two years prior to his firing in 2010, received 30 months in prison three months after pleading guilty to securities fraud and conspiracy. He told U.S. District Judge Jed Rakoff at the hearing, "I made mistakes. I crossed the line. I broke the law."

Prosecutors had sought as much as almost five years in prison for Longueuil, arrested as part of the Justice Department's crackdown on expert-networks. Longueuil's lawyer, Craig Carpineto, asked for just 18 months, calling his client, "at best a third-tier tippee."

But Rakoff rejected that plea for leniency, ruling that "there is a bedrock of hard facts that can't be ignored."

"This crime was, in the court's view, not a one-time aberration. The crime was one that has infiltrated too much of the business of this country."

Rakoff also cited Longueuil's efforts to destroy evidence—including a taped phone call in which Longueuil tells one of his co-conspirators, who was cooperating with prosecutors, that he broke apart a pair of computer drives and dumped their pieces in four different garbage trucks.

That action was "a flagrant flouting of the most elementary rule of law and morality," Rakoff said, even though Longueuil was not charged with obstruction of justice as part of his plea agreement.

"Donald Longueuil thought he could cover his tracks by frantically searching the streets of New York in the middle of the night for places to conceal the evidence of his crimes,” U.S. Attorney Preet Bharara said in a statement. “It turns out he may have been too smart for his own good, as he now becomes the latest privileged professional to go to jail for brazenly breaking the laws against insider trading.”

Longueuil is one of 14 people charged in the case. A dozen have pleaded guilty and one has been convicted; the last will go on trial this month.


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Hedgie Funds US Squash Program

Dec 24 2014 | 8:46am ET

Squash, anyone?

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.