Two named in $6.7 million illicit gains schemes

In mid-April, the US Securities and Exchange Commission (SEC) announced new charges against individuals "involved in widespread and brazen international schemes of serial insider trading that yielded at least $6.7 million of illicit gains". According to the regulator, the schemes were orchestrated by two individuals – Eugene Plotkin, a research analyst in the fixed-income division of Goldman Sachs, and David Pajcin, a former employee of Goldman Sachs.

In one scheme, Plotkin and Pajcin persuaded a mergers and acquisitions analyst at Merrill Lynch to provide tips on upcoming mergers in return for a share of the trading profits. In another scheme, Plotkin and Pajcin recruited two individuals to obtain jobs at a printing plant in Wisconsin, steal advance copies of BusinessWeek magazine and tip Plotkin and Pajcin on the names of companies discussed favourably in the Inside Wall Street column before the magazine became public.

Plotkin and Pajcin traded on the inside information, initially in an account in Pajcin's name and later, in accounts in the names of others in Europe and the US.

Plotkin and Pajcin also tipped several individuals in the US and Europe in return for a share of their trading profits.

In total, Plotkin and Pajcin traded in at least 25 stocks within one year based on inside information obtained through these schemes. The SEC's complaint charges 13 individuals in the US and Europe for their roles in the scheme. OR&C

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here