Remember Donald Longueuil? He's the former SAC Capital trader who was accused of insider trading back in February. The feds were able to bring charges against Donny thanks to his ex-best friend, Noah "Judas" Freeman, who also worked at SAC for a time (and took part in the alleged ill-gotten gains made off of tips from expert network analyst Winifred Jiau) and agreed to record conversations with Don in exchange for a lesser sentence and permission to go to Puerto Rico with his wife. As a refresher, here's what they've got Donald on tape saying re: his USB flash drive (dramatic reenactment can be heard here):
"The night that Wall Street Journal article came out...I pressed the eject button and everything's fucking gone...destroyed....everything. Fuckin', I, uh...I chopped it up, chopped up everything. It was easy. You take two pairs of pliers and then you rip it open and then, it just a piece of NAND...So I just fucking ripped it apart right there...I had two external drives that had like wafer numbers on 'em. Fuckin' pulled the external drives apart. Destroyed the platter...put 'em into four separate little baggies and then at 2am...2 am on a Friday night, I put this stuff inside my black North Face jacket and leave the apartment and I go on like a 20 block walk around the city...and try to find a garbage truck...and threw away the shit in the back of like random garbage trucks, different garbage trucks...4 garbage trucks. The Feds can try and find it but it's all fuckin' ripped apart...everything's gone."
Still, though, according to Donald, the Feds have got NOTHING. Nothing!
First off, how was he supposed to know that the information coming from Winifred Jiau was material non-public and second, he was like the third guy to hear it. Hardly anything to make a stink about.
In court papers, Longueuil and Jiau argue there isn’t any evidence that information Longueuil allegedly received was from an insider at Marvell Technology Group Ltd. (MRVL) or Nvidia Corp. (NVDA), or that the original insiders then provided that information to Jiau...“The indictment fails to allege Mr. Longueuil knew or should have known that material nonpublic information he received from non-inside sources was originally obtained from an inside tipper that fraudulently breached a duty,” Craig Carpenito, a lawyer for Longueuil, wrote in court papers filed April 8. “Mr. Longueuil was a third tier recipient of the information at best,” he wrote.
As for why Donny felt the need to take a sledge hammer to his flash drive, if he thought everything was cool, don't even go there. Every does that. Flash drive, phones, Bloomberg terminals, paper and pens. Standard business practice. You don't? That's kind of weird.