The Cheaters Who Couldn’t Trade Straight

Author:
Updated:
Original:

As it turns out, at least one part of the far-flung insider trading scheme allegedly masterminded by former Goldman Sachs employees Eugene Plotkin and David Pajcin was a total bust. Pajcin allegedly sold short shares of Bristol-Myers based on information—namely that an unnamed executive of the company would likely be indicted—passed to him by a high school friend who was serving on a grand jury probe. When no indictments came out the grand jury, Pajcin wound up down around $7000. Doh!
We learn this and other sweet details from Bloomberg’s report on the second member of Plotkin-Pajcin Plot to plead guilty. This time its Jason Smith, a New Jersey mailman.
Smith’s next move will probably be to rat out Plotkin and Pajcin. In July Stanislav Shpigelman, a former Merrill Lynch analyst, pleaded guilty in the case, and is thought to be cooperating with prosecutors. Smith's plea agreement calls for a sentence of between 30 and 37 months, which is a lot better than the 25 year maximum he may have faced had he gone to trial.

N.J. Postal Worker Pleads Guilty in Inside Trade Case
[Bloomberg]

Related