SAC Capital is “outraged” by the alleged actions of Noah Freeman and Donald Longueuil, who used to be portfolio managers at SAC.
Jonathan Gasthalter, a spokesman for SAC said,
We are outraged by the alleged actions of two former employees, which required active circumvention of our compliance policies and are egregious violations of our ethical standards.
The government alleges that their improper conduct together began at their prior firms in 2006 and continued after they joined SAC in mid-2008. They were employed at SAC for a short time and were dismissed in January 2010 and June 2010, respectively, due to poor performance. SAC is continuing to cooperate with the government’s investigation.
The fund might be outraged, but it might be at least a little proud of the lengths the two went to in order to cover them up.
Background: Freeman and Longueuil were just charged with insider trading – and some interesting and damning details have emerged about what they allegedly did.
As for Longueuil (pictured), it was in his blood to act fast when he learned that the Feds were looking into insider trading related to an expert network. He’s a speed skater!
As soon as he read the article in the WSJ about the Feds cracking down, Longueuil allegedly destroyed a flash drive and two external hard drives using pretty elaborate lengths.
He explained what he did to Freeman, who may have shared the information with the Feds, considering that he’s a cooperating witness.
The destruction of materials was very calculated:
So I just [expletive] ripped it [referring to the flash drive] apart right there… I had two external drives that had like wafer numbers on ’em. [expletive] pulled the external drives apart. Destroyed the platter… Put ’em into four separate little baggies, and then at 2 a.m. … 2 a.m. on a Friday night, I put this stuff inside my black North Face [u/i] jacket,… and leave the apartment and I go on like a 20 block walk around the city… and try to find a, a garbage truck… and threw the [shit] in the back of like random garbage trucks, different garbage trucks… four different garbage trucks.
Longueuil is charged with insider trading and obstruction of justice.