Does anyone know exactly what Eugene Plotkin did as a fixed-income analyst at Goldman Sachs? We’ve wondered and probed and asked but have never been able to get to the bottom of this question. How amazing would it be if he produced some amazing report about how the US housing market was headed for trouble and advised shorting mortgage based derivatives?
An important update on Plotkin after the jump.
Anyway, Plotkin’s on our mind today because we’ve been reading in the Journal News about how the twenty-eight year old convicted of insider trading has been asking the court for leniency, telling them that he should only get 57 months for his role in the best insider trading scandal of 2006. We call it the best not because it worked that well—that might be interpreted as encouraging effective wrong-doing—but because it involved steam rooms in Russian bath houses, central European dead drop grandmothers, strippers and the classic “let’s steal Business Week” move. It’s like Wall Street meets Eastern Promises.
We also called it the Plotkin Plot, on the grounds that he seems to be the ring leader. Or maybe because it was nicely alliterative and we’ve been trying to revive the alliterative tradition of English poetry for the better part of our lives. But really, he did seem to be the ring leader. He was the guy who assembled the team—like Charlie from Charlie’s Angels, only the Angels were shlubby kids with questionable Wall Street jobs instead of ass-kicking hot chicks.
But now Plotkin says he totally wasn’t the ring leader. It was that other Goldman guy, David Pajcin who ran things.
While Plotkin assembled the team, it was Pajcin who came up with the ideas and placed the trades. So Plotkin was more like the HR department while Pajcin was the origination and execution guy, according to Plotkin.
Perhaps the most persuasive argument Plotkin makes is that Pajcin was the first member of the ring to cop a plea and provide evidence to prosecutors. In our vast experience (mostly watching Homicide, the Wire and other crime dramas not including any Law & Order spin-off), the guy who first turns state’s evidence is usually the real wrong-doer.
Plotkin lawyer looking for leniency [Journal News]