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The U.S District Attorney today announced more insider trading charges against four men.Those men are:
- Samir Barai (founder and PM at Barai Capital)
- Donald Longueuil (former employee of CR Intrinsic, a division of SAC Capital)
- Jason Pflaum (former Barai Capital analyst)
- Noah Freeman (a former PM at SAC Capital’s Boston office)
The complaint alleges that all four men shared non-public, material information with each other between 2006 and 2010 about Marvell Technology and other publicly traded companies, which they then traded and profited on.
Some of the illegal information they gathered was via arrested Primary Global expert, Wini Jiau.
Barai surrendered to the FBI this morning. Longueuil, who’s 35, was arrested this morning at his Manhattan home. They’ve both been charged with securities and wire fraud, as well as obstruction of justice.
The charges against Barai pertain both to his time at Barai Capital and when he was a portfolio manager at Citi between 2005 and 2008.
Pflaum and Freeman have already pleaded guilty and have been cooperating with the feds for some time.
According to the FBI complaint against them, Barai caused SAC Capital to execute the below securities transactions based on insider information:
Barai has also been charged with obstruction of justice, because he wilfully and knowingly,
“altered, destroyed, mutilated and concealed a record, document and other object’s integrity and availability for use in an official proceeding.”
He attempted to destroy documents and digital recordings after reading about the FBI’s massive insider trading probe in the WSJ on November 19th last year. Barai told analyst Pflaum he read the story 10 times and barely slept on the night he read it. He also instructed Pflaum to “shred as much as u can” and delete other files and recordings.
Below is an extract of the FBI’s overview of the insider trading scheme:
And here’s a summary of Barai and Longueil’s attempt to destroy evidence of their illegal activities: