Remember Noah Freeman and Donald Longueuil? Former SAC Capital portfolio managers and best buds, fired from SAC for performance and later confronted by the Feds, who divided and conquered the duo by convincing Freeman to record his conversations with Longueuil, which didn’t come of much until Noah got Don to give a step-by-step guide to destroying evidence of wrongdoing?
Longueuil is set to be released from prison in December and Freeman, who once ran around San Francisco in his underwear while tripping on ‘shrooms and shouting “I said buy, motherfucker” at no in particular, is awaiting sentencing. But before they put all this behind them and move on with their lives (Don is taking a three-week honeymoon in January; Noah has hundreds more cities to traipse through half-naked), how about one last trip down memory lane? This one is courtesy of Vanity Fair from a larger article about D&N’s boss, and involves the kind of cover for their illegal activities that’d make Ping Jiang curse the fact that their time at SAC didn’t overlap. Read more »
If you are a hedge fund manager who goes by the name Steven A. Cohen, there are a few things you really don’t want to hear first thing in the morning. They include:
a) “You might not want to put that whiteboard marker in your mouth“
b) “The fleeces are on back order”
c) “Your ex-wife is in the lobby”
d) “There’s a photographer here who said he’s been authorized to shoot you wearing a king’s robe and crown for a set of playing cards”
e) “You’ve been outmaneuvered for the Toledo Mud Hens. But I hear the Binghamton Mets may be available.”
f) “One of your former employees told the FBI you regularly trade on material non-public information.”
No one has sodomized anyone with any foreign objects lately, the supplier got the message (“That shipment will be here in the next hour or you’ll find out what it’s like to be dragged down the BQE via Zamboni”) loud and clear, Patty C is sitting this round out, photoshoots have been banned, and baseball in general can go fuck itself, so the mood at 72 Cummings Point Road today can likely be attributed to this:
A former SAC Capital Advisors LP portfolio manager told the FBI it was “understood” that those assigned to give their best trading ideas to founder Steven A. Cohen would provide him with insider information, according to an agent’s notes of the conversation. The former fund manager, Noah Freeman, pleaded guilty to securities fraud in February 2011 after speaking to Federal Bureau of Investigation agents and federal prosecutors in New York in late 2010, in a so-called proffer session. Defendants use such sessions to determine whether to cooperate with the government against others. “At SAC Capital you were expected to provide your trading ideas to Cohen,” Freeman said, according to a Dec. 16, 2010, memo written by FBI Special Agent B.J. Kang. “Freeman and others at SAC Capital understood that providing Cohen with your best trading ideas involved providing Cohen with inside information.”
Doesn’t sound good! But before anyone launches himself into space in a rocket disguised as a Bob’s Big Boy statue, let’s stop to consider that: Read more »
Remember Noah Freeman? To recap, he’s the former SAC trader who, in addition to taking part in an insider trading scheme, committed an arguably worse** crime (within a crime) when he stabbed his best friend, Donald Longueuil in the back. Despite splitting the work of obtaining and trading on material non-public information from a lobster-loving tyrant 50/50, Judas Freeman decided that Don, the guy who served as best man at his wedding and who prior to that happy day, helped him “get out of bed in the morning” following a bout of depression on account of being dumped by his previous fiancée, should be the one to take the brunt of the punishment. That’s why he agreed to wear a wire and coax Longueuil into incriminating himself on tape on four separate occasions, which finally paid off when Don gave Judas a riveting blow by blow account of exactly how he destroyed evidence of the insider trading they both took part in.
In exchange for selling his friend down the river, Freeman was given permission to go on vacation with his wife (first to Puerto Rico, then the U.S. Virgin Islands, which he’d been looking forward to for months). Now, at first glance, this seems fairly ice cold. Colder than the ice Judas and Don once glided down, hand in hand, even. One might even get the impression that Judas believed friends who will not only share your interest in ice skating but who will nurse you back to health following an emotional breakdown and give a bang-up speech at your wedding grow on trees. But maybe it didn’t go down like that? Maybe Judas tried desperately to avoid betraying the one person who was always there for him? Maybe he told the Feds they could go to hell and he didn’t jump at the chance to save himself on the back of Donald? Unfortunately, the evidence suggests otherwise. Read more »
Back in June, the lawyer for Winifred Jiau, expert network empress and accused insider trader, made a simple plea: “Put an end to this misguided prosecution,” Joanna Hendon said. “Send Ms. Jiau back to California, and to her dog.”
While the request might’ve played well with golden retriever lovers, the presiding judge didn’t care. He dragged things out another month, finding Jiau guilty over the summer and later on denying a request for acquittal or a new trial. Was Winifred the person you wanted to work with if you held an elastic view of securities laws and most certainly guilty of insider trading? Unquestionably: yes. Was she an individual who commanded sympathy, leniency or to whom you’d want to throw a bone? Those who benefited from her tips would be the first to tell you hell no.
In fact, she was bossy, she would cancel meetings at the last second, she would demand $300 gift certificates to the Cheesecake factory in one breath and a dozen Thanksgiving lobsters in the next, she would meet you for a pass off of material non-public information and tell you the shellfish you sent were Maine lobsters and she’d specifically request South African lobsters (even though she hadn’t) and then spit in your face and walk away and yes, sometimes you’d sit at your desk after she’d reamed you out over the phone for not giving her “the sugar” and fantasize about various ways you could kill her and make it look like an accident but having said all that: there’s a dog waiting for this lady and judge? She knows people who can make certain that these will be the first words you hear when you wake up and the last one’s you hear before you go to bed, for the rest of your life: Read more »
Winifred Jiau, the Primary Global consultant who worked closing with, among others, ex-SAC portfolio manager Noah Freeman, was found guilty on insider trading charges this morning, after two days of jury deliberations. The 43 year-old Jiau now faces up to 20 years for securities fraud and an additional five years for conspiracy. For the math whizzes in the group, that means she’ll be a mere 68 years old when sprung free. If you’ve been keeping up, you know even those who Wini drove to fantasies of killing her and making it look like an accident (no names: Noah Freeman) couldn’t deny she was the best at providing material non-public information and since there’s no reason to believe she won’t keep her skills sharp while in the joint, anyone looking to hook up with her in 2036 would be wise to write the following down. Read more »
As we have learned from former SAC trader Noah Freeman’s extensive testimony in the government’s insider trading case du jour, expert network analyst Winifred Jiau had a tendency to act irrational, demanding and sometimes plain bitchy. Whether her behavior stemmed from a power trip associated with realizing she was the person anyone who was anyone in the insider trading space wanted to work or she was simply born that way is unclear but regardless, while it may have annoyed some clients, it didn’t stop anyone from buying what she was selling, i.e. inside information that was “precise to the decimal.” Freeman, for example, has go so far as to praise her tips as best in class while sharing that he fantasized about doing her bodily harm, such as when she would make what he felt to be absurd requests like two (2) iPhones, gift cards to clothing stores, the Cheesecake factory and a dozen Thanksgiving lobsters. Apparently, though, the stuff wasn’t for Jiau. She just needed it to land another member of her “club.” Read more »
Unless you’re also counting those that fell in the “gray area,” in which case, that’s really anyone’s guess. Read more »
That was former SAC Capital trader Noah Freeman. Read more »
He’s “not sure what happened.” Read more »
Yes she could be bossy, yes she would cancel meetings at the last second, yes she could be a crazy bitch who’d demand $300 gift certificates to the Cheesecake factory in one breath and a dozen Thanksgiving lobsters in the next, yes sometimes you’d meet with her for a pass off of material non-public information and she’d tell you the shellfish you sent were Maine lobsters and she’d specifically request South African lobsters (even though she hadn’t) and then spit in your face and walk away and yes sometimes you’d sit at your desk after she’d reamed you out over the phone for not giving her “the sugar” and fantasize about various ways you could kill her and make it look like an accident but god damn it, this woman knew her shit and when this whole thing blows over you two are going to start working together again because you can’t imagine doing the trading thing without her and you know what? You don’t want to. Read more »
As previously discussed, one major focus of the government’s insider trading cases du jour is the use of primary networks, whose information those on the prosecution side argue is just too good. Among all the expert network analysts charged, one stands out- Winifred Jiau. The best of the best, Jiau seems to have worked with everyone who’s been accused of trading on material non-public information and for good reason- her information, according to clients, was “precise to the decimal point.” And unlike other expert network analysts, who perhaps weren’t as good or just didn’t know their worth, Jiau was well-aware of just how much her trader friends needed her, and acted as such. In the opinion of former SAC Capital PM Noah Freeman (who pleaded guilty in April, after working with the government to turn over his ex best friend and colleague Donald Longueuil), this was like a bitch.
“Despite her information being very, very accurate, she was very difficult to work with,” said Mr. Freeman, an articulate and confident 35-year-old Harvard College graduate. Among the issues he said that he had with Ms. Jiau: She could be rude, it was hard to get a hold of her and she often canceled meetings at the last minute.
And yet, he couldn’t quit her. When “Poohster” (apparently Freeman and Co’s nickname for Jiau) said jump, Freeman asked how high. Similarly, when Poohster said “buy me an iPhone,” buy me a gift certificate a clothing store no wait I meant the Cheesecake Factory,” and “buy me a bunch of lobsters,” Freeman said “how many,” “for how much,” and “how would you like them delivered?” Read more »