A prosecutor said a former Advanced Micro Devices Inc. employee who pleaded guilty to insider-trading charges and later testified at trials against others deserves leniency when he’s sentenced next week.
Mark Anthony Longoria, 47, who is scheduled to be sentenced July 1 by U.S. District Judge Jed Rakoff in Manhattan, has provided “substantial assistance” to the government in its investigation and prosecution of others, Assistant U.S. Attorney Antonia Apps said in a letter to the court filed yesterday.
Longoria, who pleaded guilty in June 2011, admitted he passed confidential information about AMD’s gross margins and revenue to hedge fund managers in 2009. He also said he provided inside information about Western Digital Corp., a hard-drive maker based in Irvine, California, when he worked for that company in 2006.
“Longoria has provided information that has been helpful to various investigations by the U.S. Attorney’s Office and the Securities and Exchange Commission,” Apps said. “In particular, Longoria has provided incriminating information against a number of hedge fund professionals who received Longoria’s inside information while he was acting as a consultant.”
Longoria moonlighted as a consultant for Primary Global Research LLC, a Mountain View, California-based firm also known as PGR that matched employees of public companies with fund managers for a fee.
He testified as a government witness at the Manhattan federal trial of James Fleishman, a PGR executive who was later convicted at trial and sentenced to 2 1/2 years in prison for helping pass inside information to hedge fund managers.
Longoria also admitted passing the information to four hedge funds, including Barai Capital Management, whose founder Samir Barai, pleaded guilty to federal charges in 2011.
Apps said that prior to signing a cooperation agreement with the U.S., Longoria made a number of false statements to the U.S. by minimizing his role in the scheme, omitted telling prosecutors and federal agents he paid AMD employees for information and falsely accused an AMD co-worker of providing him with nonpublic information. She said he could face a total of 50 years in prison.
She requested leniency for Longoria, citing his assistance to the government in its insider-trading investigations, saying he helped prosecutors in their case against Level Global Investors LP co-founder Anthony Chiasson and former Diamondback Capital Management LLC portfolio manager Todd Newman. Both men were convicted by a jury in December and later sentenced to prison. Chiasson and Newman remain free while they appeal their convictions.
Longoria is also on a list of potential witnesses who will testify for the government at the insider-trading trial set to begin in November of SAC Capital Advisors LP fund manager Michael Steinberg, Apps said.
Longoria has asked Rakoff to sentence him to a term of probation.
The case is U.S. v. Longoria, 11-cr-00032, U.S. District Court, Southern District of New York (Manhattan).