Photo: The Smoking Gun
When the Wall Street Journal published a story in mid-November about a major FBI insider trading probe, Donald Longueuil sprung into action.Longueuil, 34, was managing director of Empire Capital Management and apparently believed that he could be a target of federal investigators examining hedge fund practices. So, according to a criminal complaint unsealed today (click here for an excerpt), Longueuil sought to destroy external hard drives and a USB drive.
In a conversation with colleague Noah Freeman–who happened to be wearing an FBI wire–Longueuil gave a detailed account of how he “chopped up everything,” stuffed the shredded electronics into “four separate little baggies” (which he placed inside his North Face jacket) and then walked the streets of Manhattan at 2 AM to find four garbage trucks in which to throw “the shit in the back of.”
When Freeman said, “I can see the Feds trying to find” the discarded material, Longueuil responded, “It’s all fuckin’ ripped apart…Everything’s gone.” When FBI agents checked surveillance video from Longueuil’s East Side condominium (where he owns a $1.725 million apartment), they spotted him on the morning in question departing his building at 1:52 AM and returning 41 minutes later. He appeared to be wearing a North Face jacket.
Longueuil, a former speed skater, is pictured in the above photo. Charged with securities fraud, wire fraud, and obstruction of justice, Longueuil was arrested this morning by FBI agents and is due this afternoon for an appearance before a magistrate judge.