As their being charged in the Feds’ massive insider trading case would seem to suggest, former SAC Capital traders Donald Longueuil and Noah Freeman may have had a somewhat elastic view of securities laws. Should the accusations hold up, the two men ought to be punished accordingly. Today though, we’d like to put Freeman on trial for something far worse: his betrayal of the one guy who was always there for him, who literally got Freeman out of bed in his darkest days. A crime within a crime, if you will.
It’s already been widely known that Longueuil and Freeman (whose name will be interchangeably used with ‘Judas’ for the purpose of this story) were both colleagues and friends from SAC Capital. But they knew each other well-before they took their gigs at the hedge fund and their friendship ran much deeper than being casual buds. In 2002, they met “through a shared interest in ice skating” and competed together in Massachusetts. Noah helped Don get a job in Connecticut at Empire Capital in 2004 and the two remained close even despite the distance. When Judas got married in 2009, it was Don who served as best man at his wedding in Maine, standing beside Freeman as he watched his wife to be walk down the aisle, “smiling,” it’s noted, because he was so happy for his friend. It’s a moment that almost didn’t happen because not too many years earlier, Freeman was an emotional basketcase, having been dumped by a previous fiancée. Who helped him “pick up the pieces”? His best buddy Don, of course.
Mr. Freeman later told co-workers he couldn’t have made it through the time without him. “I needed Don to get me out of bed this morning,” he said at one point, according to the person familiar with the situation.
AND HOW DID JUDAS REPAY THIS ACT OF BROTHERHOOD? By cutting the best deal possible for himself when the Feds came a’ calling, agreeing to secretly tape the person who was not just his colleague but his closest friend. And in so doing, committed a crime far more serious in nature than the one he was setting up Longueuil to get caught committing (see table below**). And whereas someone else might’ve made a halfhearted attempt to incriminate his buddy and then gone back to the government and said he couldn’t get anything, Judas made sure.
During their meeting, on Monday Dec. 20, Mr. Freeman tried at least four times to get his friend to admit he traded on inside tips, according to transcripts: “We both did, didn’t we?” Mr. Freeman asked, according to the transcripts.
“Yeah,” Mr. Longueuil said.
What did Freeman get in exchange for selling his friend down the river by making him say out loud, STEP BY STEP, exactly how he destroyed evidence of the insider trading they both took part in? Permission to go on vacation.
At Mr. Freeman’s plea hearing, prosecutors and a judge said Mr. Freeman could travel in coming months to Puerto Rico and the U.S. Virgin Islands, where he plans to attend triathlons with his wife.
Someone might say to Noah, “I hope you crash your bike and break your two front teeth, while you leave your former friend in the trenches taking grenades, you selfish son on of a bitch.” We’ll just leave it at this: Good luck finding another dude who will dry your tears.
Manager Took Down Best Friend In Insider Trading Case [WSJ]
**In descending order:
>>Stabbing your best friend in the back