(CN) - Investment banker Donald Longueil pleaded guilty less than three months after his arrest for insider-trading charges in Manhattan federal court.
Longueil worked as a research analyst and portfolio manager at two different hedge funds. Authorities say he conspired to obtain confidential financial information from Marvell Technology Group.
At his plea hearing before U.S. District Judge Jed Raskoff, Longueil admitted that he destroyed hard drives and a flash drive after hearing about the government's investigation into potential insider trading.
Co-conspirators Jason Pflaum and Noah Freeman pleaded guilty to related charges the day they were arrested, and are awaiting sentencing. The two cooperated with authorities to bring down Longueil and alleged co-conspirator Samir Barai who now faces charges.
According to the federal complaint against the four men, Barai urged Pflaum to destroy any possible paper trail the day after reading press coverage regarding a federal investigation into the expert networking firm they used.
"Shred as much as u can," Barai wrote Pflaum in a text message. "They need proof that we acted on something."
Authorities believe the four men began inside trading in 2006, often using an expert-networking firm to communicate and pay their sources. For instance, in 2008, Barai's hedge fund bought 300,000 shares from Marvell Technology Group based on accurate inside information provided by Winifred Jiau, who was arrested last December.
Longueil faces a maximum of 20 years in prison at his July 29 sentencing.
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