Hedge Fund Manager Chases Garbage Trucks To Hide Evidence
The Wall Street Journal broke the news that a former hedge fund manager at SAC Capital Advisors allegedly tore his computer drives apart with pliers after reading about the insider trading probe late last year. The three year probe which came to light last November is targeting SAC Capital Advisors, one of the most powerful hedge funds in the U.S. Hedge fund manager Sam Barai sent an instant message to analyst Jason Pflaum, which said “Just go into the office…shred as much as u can…” Mr. Pflaum has pleaded guilty to securities fraud and conspiracy and is cooperating with authorities. Mr. Barai has been charged with securities fraud and conspiracy and his attorney declined to comment, according to the article. Additionally, two former employees charged are Donald Longueuil and Noah Freeman. Mr. Freeman has pleaded guilty to securities fraud and conspiracy in connection with his work at SAC. Mr. Longueuil has been charged with conspiracy to commit securities fraud, wire fraud and obstruction of justice, according to the article.
The criminal complaint that was unsealed, paints the picture of hedge fund managers in total panic after reading about the insider trading probe. A version of one night’s events was recorded by Mr. Freeman who was cooperating with the investigation. It tells of Mr. Loungueuil tearing apart his computer external drives with pliers, stuffing them into four separate baggies inside his jacket and at 2:00 A.M. leaving his apartment on a twenty block walk to search for four random garbage trucks where he disposed of the mangled pieces. Manhattan U.S. Attorney Preet Bharara said, “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.”