Donald Longueuil, a former junior portfolio manager at SAC Capital Advisors, pleaded guilty Thursday to conspiracy to commit securities and wire fraud and to securities fraud as the U.S. cracks down on insider trading at hedge funds.
Mr. Longueuil entered the plea before U.S. District Court Judge Jed Rakoff in New York. Mr. Rakoff said there was a plea agreement between the U.S. and the defendant and that Mr. Longueuil could face a prison sentence of 46 to 57 months.
“I am sorry for my actions and the pain that I have caused my family and loved ones,” Mr. Longueuil told Mr. Rakoff. “I have learned a lot from my experience, and I look forward to applying these lessons as I move forward with my life.”
Charges were first filed against Mr. Longueuil in February by U.S. Attorney Preet Bharara in a case that also included another former SAC Capital portfolio manager, Noah Freeman; and Samir Barai, founder of Barai Capital Management; and Jason Pflaum, who worked for Barai Capital. Messrs. Freeman and Pflaum have pleaded guilty and are cooperating with the U.S.
Mr. Longueuil and Winifred Jiau, a former consultant for Primary Global Research, were charged with conspiracy in a new federal indictment in March. Prosecutors said Ms. Jiau passed inside information to an unnamed hedge fund portfolio manager and to Mr. Freeman, a hedge fund manager. Ms. Jiau has pleaded not guilty.
Mr. Longueuil, who worked in SAC Capital’s CR Intrinsic unit from July 2008 to July 2010, was accused of giving information to Mr. Freeman, who, in exchange, passed material non-public information to Mr. Longueuil that he had obtained from sources, including Ms. Jiau, according to prosecutors.
SAC Capital has said it cooperated with the U.S. investigation.