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Former SAC Capital Trader Noah Freeman Didn't Appreciate Filling Tipster's Shellfish Orders, Knowing The Only Thing He Could Do About It Was Bitch And Moan To Secretary

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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?"

In addition to the cash compensation, Mr. Freeman said that he and Samir Barai, another hedge fund manager who has pleaded guilty, provided Ms. Jiau with presents, including three iPhones. There was also a gift certificate to a clothing boutique “that we canceled at her request and replaced with a $300 gift certificate to The Cheesecake Factory,” Mr. Freeman said. But the most amusing gift came in November 2007, when Ms. Jiau asked the Boston-based Mr. Freeman for 12 lobsters so she could serve them on Thanksgiving. “I remember this because it was an unusual time to serve lobsters,” Mr. Freeman said.

The government then showed Mr. Freeman an e-mail he had sent to his secretary Annie Gallin with the subject heading “Can you please send lobsters to Winnie?” “I know you hate her but we have to do this,” he wrote. “Sure thing,” Ms. Gallin replied. “I hope she gets sick from the lobsters.” “Me too (but not dying, just suffering),” Mr. Freeman responded.

Right, because if the Poohster were to die, where would Freeman get his information from? No, best to just wish a couple days of violent food poisoning on her. And then when she lets the lobsters perish at FedEx, rather than in boiling water, threaten (to your secretary) to call PETA on her ass and mention that you have a right mind to tell her where to go, before complying with her next demand within seconds of the request, lest she get angry.

Ms. Gallin dutifully sent Ms. Jiau a dozen lobsters from the Fresh Lobster Company in Gloucester, Mass., across the country to Ms. Jiau, who lived in Silicon Valley. But there turned out to be a slight problem. “Typical Winnie to leave 12 lobsters to die at FedEx,” Ms. Gallin wrote in a follow-up email. “She has no heart.” She does, however, appear to have chutzpah. The next month, Ms. Jiau asked for another dozen lobsters for Christmas, a request with which Mr. Freeman dutifully complied.

That's right, Errand Boy. And don't forget to pick up the dry-cleaning, presort the M&M's into ROYGBIV piles, draft a summary of today's episode of One Life To Live and feed the dog, or there'll be hell to pay.

Former SAC Trader Tells Jury Of Tipster's 'Perfect Information' [DealBook]


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.

Things Could Be Worse But They Could Also Be Better At SAC Capital Right Now

The good news, if you are Mr. Steve Cohen: you were neither charged nor "mentioned by name" in the criminal complaint against your former employee, Mathew Martoma. The less good news: YOU ARE PORTFOLIO MANAGER A. YOU NEVER WANT TO BE PORTFOLIO MANAGER A!