Wednesday, 28 September 2016
Last updated 41 min ago
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.