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Donald Longueuil And Noah 'Judas' Freeman: A Bromance Betrayed

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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
>>Securities violations


Noah Freeman Can Consider His Invitation To The SAC Capital Alumni Hayride And Pumpkin Picking Party Rescinded!

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: 1) The person who made this claim is Noah 'Judas' Freeman, the ex-SAC employee who recorded Donald Longueuil-- his closest friend, best man, and the guy who "helped Freeman get out of bed in the morning" during a bout of crippling depression he suffered after being dumped by his previous fiancée-- admitting to destroying evidence of the insider trading they both took part in in order to save himself and not have to eat the cost of the Puerto Rican vacation he'd booked months earlier, i.e. a person looking out for number one and number one only, who seems like he would probably say anything if he thought it was in his best interest.* 2) According to Bloomberg, "Freeman isn’t quoted as saying Cohen, 56, knew the information came from illegally obtained tips, ordered him to provide them or traded on the data," and unless someone can get their hands on the unofficial company handbook that includes a chapter on the burly-looking man who stops employees approaching the boss with an idea to say "If you violated any fewer than five securities laws in getting this information, don't waste his fucking time," proving that there was an unwritten, unspoken expectation that "the trading ideas involved dirty information," based on one crooked guy's claim, seems difficult. Having said all that, if it turns out four other people come forward to confirm Freeman's claim, or if he also wore a wire when chatting up Cohen, as he did with Longueuil, and got Cohen to go into great detail re: the wink-wink policy at the firm, that would be less than great and would probably have the potential to take over for the worst day of the Big Guy's life. But hey, no more forced sodomy on the trading floor! That's something! Ex-SAC Capital Manager Tells FBI Fund Used Insider Data [Bloomberg] Earlier: Donald Longueuil And Noah ‘Judas’ Freeman: A Bromance Betrayed *Re: Going on vacation, not going to prison.