Surely by now you’ve read the most outrageous thing that’s emerged in the latest insider trading bust — Don Longueuil‘s describing how he destroyed evidence.
Longueuil said in a recorded conversation that he “f-n pulled the harddrive apart…put them into 4 baggies…threw the s-t in  random garbage trucks.
It’s bad, but here’s what makes it even worse.
The FBI got the recording from someone who had been his friend and (at one point) work colleague for 7 years.
Noah Freeman met Longueuil in 2003 in Boston, when he was doing consulting work, says the Wall Street Journal. Soon after, Freeman, Longueuil, and Samir Barai (who the Feds caught via information from his analyst, Jason Pflaum) began keeping in regular touch on conference calls quarterly conference calls.
(Longueuil and Freeman both later worked at SAC Capital, but they were fired in 2010 for performance reasons.)
Fast forward 7 years and all three are accused of insider trading because they allegedly traded on information received wrongfully from expert networks.
But Longueuil and Barai are the ones really in trouble — they’re the first high profile hedge fund managers charged with insider trading in months. Almost everyone else charged so far has been from an expert consulting network that allegedly gave out the information, or they’ve been connected to the Rajaratnam insider trading case from 2009.
And they’re really in trouble thanks to two of their colleagues, who, it seems like, essentially ratted them out to save their own hides. In Freeman’s case, it’s really screwy because it seems like he’s the one who provided Longueuil with the information he traded on and he’s the one who recorded him talking about it for the FBI.
Here’s how it happened, according to the complaint.
Click here to see how Noah Freeman gave his friend information and then ratted him out >
The information he destroyed was allegedly about Marvell's (May 29, 2008) earnings -- information that travelled from Wini Jiau to Freeman to Longueuil
So Freeman allegedly supplied Longueuil with the reason he had that conversation in the first place.
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