Hedge Fund | Ex-Manager Of SAC Gets 2-1/2 Years In Prison Insider Trading Case

* Longueuil admitted to securities fraud, conspiracy

* USA 46-57 month term sought, the defense requested less

* Charged hard drives destroyed, garbage trucks Eye - United States

By Jonathan Stempel

NEW YORK, July 29 (Reuters) - A former portfolio manager Steven A. atbillionaire Cohen 's hedge fund was sentenced to 2-1/2 onFriday years in prison after pleading guilty to trading toinsider the chip maker Marvell Technology Group Ltd (MRVL. O).

Donald Longueuil, a former SAC Capital Advisors LP MoneyManager is one of about 50 people who have an extensive U.S. chargedin hedge fund insider trading probe unveiledin October 2009. Longueuil, 35, pleaded guilty in April 28to securities fraud and conspiracy, and lost $ 1.25 billion.

Prosecutors said that from 2006 to 2010, Longueuil, Noah Freeman formerSAC analyst and hedge fund manager Samir Baraiagreed to share tips on companies such as Marvell, Actel Corp., Advanced Micro Devices Inc (AMD.N), Cypress Semiconductor Corp (CY . O), Fairchild Semiconductor Corp. and Nvidia Corp. (NVDA.O).

He also said wiretaps showed Longueuiladmitting reported to have toured Manhattan at 2 am to find that rule garbagetrucks flash and hard drives destroyed.

The penalty imposed by U.S. District Judge Jed Rakoff wasshorter 46 to 57 months that prosecutors sought, whichmirrored federal sentencing guidelines.

It is also the same sentence as Danielle Chiesi, a formerhedge fund operator who pleaded guilty to insider trading, received on July 20 from another federal judge in Manhattan, Rakoff apunishment discussed.

Longueuil attorney 's, Craig Carpenito, called for a 18-monthterm.

"Base of the Naked Truth"

Rakoff said the prosecution made a "compelling case" that the trade priorinsider sentences have not deterred others, but thatthe guidelines range is "artificial and not the multitude of variables reasonablycapture" in the case of Longueuil 's.

The judge said he had condemned Longueuil justtwo years in prison, but obstruction of justice.

"There is much good in this person," and the defendant, "the fullness inthe time, lead a productive and useful," Rakoff said. "But there is a basis of specific facts that cannotbe ignored."

Longueuil before the judge said he accepted "fullresponsibility" for their crimes. "I made mistakes, I crossed Thelin, who broke the law," he said.

The defendant maintained his composure during thesentencing, but wept on his shoulder counsel 's right afterward.Carpenito declined to comment after the hearing. Longueuil isexpected to begin his sentence on September 13.

Neither SAC, one of the hedge fund better known norCohen has been implicated in the investigation of hedge funds. SAC has saidit has cooperated with the government.

"Hedge Fund Manager INSATIABLE yuppie"

Avi Weitzman, a federal prosecutor, had told Rakoff statement priorto Longueuil conducted a "long-term, dedicated effort repeatedand" with Barai and Freeman to enter tipsand advance your career.

"The amount of money people can earn in place, young adults, is very large," he said.

Carpenito, however, called his client "best, Tommee A third level," which has its tricks indirectly. Calledit also to "tense argument" for Longueuil as a "hedge fund manager insatiableyuppie" the prosecution portrayed. "

Prosecutors said a source of advice for Longueuil, Barai Jiau andFreeman was Winifred, an expert consultant for Primary Global Research LLC networkingfirm. A federal jury convicted Jiauof insider trading on 20 June. [ID: nN1E75I0BL]

Barai and Freeman were also convicted. Most defendants theremaining? In the investigation of insider information that pleadedguilty or were convicted at trial.

The case is U.S. against Longueuil, USA District Court, Southern District of New York, No. 11-00161. (Reporting by Jonathan Stempel, editing by Gary Hill)