David Pajcin, a former Goldman Sachs analyst and one of the leaders of an elaborate insider trading scheme that led to the conviction of six men, may have left the country in violation of his probation, Bloomberg reports
Pajcin and Eugene Plotkin famously traded on leaks from a Merrill Lynch analyst and created an elaborate scheme to obtain advance copies of Business Week magazine in order to trade on its Inside Wall Street column. Pajcin pleaded guilty to insider trading, cooperated with prosecutors and was sentenced to about two years in prison — time he’d already served when he was sentenced in January.
According to the Bloomberg article,
Pajcin was required to remain under supervision of a court probation officer for three years after being released. In a letter yesterday to a judge in a related civil case by the Securities and Exchange Commission, Scott Black, an SEC trial lawyer, said the U.S. Attorney in New York told him that Pajcin “is in violation of his probation.”‘
Prosecutors and Pajcin’s criminal lawyer, Jesse Siegel, “believe he is no longer in the country,'” Black wrote in the letter to U.S. District Judge Kimba Wood.
Pajcin stopped reporting to his probation officer and prosecutors asked a judge to issue a warrant for his arrest, Siegel said today in an interview.
“I have no idea where he is,” the attorney said, adding that Pajcin faces additional jail time for violating his probation. Siegel said he never said that Pajcin had fled the country.
Pajcin’s lawyer in the SEC case, Paul Lieber, said he hasn’t spoken to his client in 2 1/2 years.
As I wrote back in 2006 in this post entitled “Insider Trading, Inc.”, the Plotkin/Pajcin insider trading ring may well be the most audacious insider trading case ever.