Memo to potential evidence-destroyers: If you find yourself suddenly needing to shred a bunch of documents or throw a hard-drive in a trash compactor, don’t later tell anyone about your plans or what you’ve done. Ever. Unless you’re standing shoulder-to-shoulder with the person and they’re completely naked.
It’s a lesson that perhaps should have been heeded by a couple of folks charged criminally on Tuesday in connection with the sprawling insider-trading case rippling through the hedge-fund world. Click here for the WSJ story; here for the NYT story.
The first is Donald Longueuil, one of two former hedge-fund managers at SAC Capital Advisors
According to the criminal complaint, filed Tuesday in Manhattan federal court, Longueuil allegedly ripped up his computer drives with pliers after reading a Wall Street Journal report on the probe late last year.
Longueuil’s version of that night’s events was recorded later, during a December meeting with a former colleague, who by then was cooperating with the government and recording conversations, according to the U.S. complaint.
“F—in’ pulled the external drives apart,” Mr. Longueuil told Mr. Freeman during their meeting, according to the criminal complaint. “Put ‘em into four separate little baggies, and then at 2 a.m. … 2 a.m. on a Friday night, I put this stuff inside my black North Face … jacket, … and leave the apartment and I go on like a twenty block walk around the city … and try to find a, a garbage truck … and threw the s—t in the back of like random garbage trucks, different garbage trucks … four different garbage trucks.”
“When people frantically begin shredding sensitive documents and deleting computer files and smashing flash drives and chasing garbage trucks at 2 a.m. … it is not because they have been operating legitimately,” said Manhattan U.S. Attorney Preet Bharara.
via On Insider Trading . . . and Shredding and Smashing and Purging – Law Blog – WSJ.