Man jailed in US insider trading case
Wednesday 13 December 2006
Latest in Business News
On Facebook
A former New Jersey postal worker was jailed for 33 months yesterday for giving friends secret information he learned while serving on a grand jury investigating accounting fraud at the drug firm Bristol-Myers Squibb.
Jason Smith, 30, is the first person to be sent to prison since investigators uncovered a $6.7m (£3.4m) insider-trading ring allegedly run by two whizzkids at Goldman Sachs in New York.
In one of the most elaborate schemes discovered by the Securities and Exchange Commission, the bankers David Pajcin and Eugene Plotkin are alleged to have paid for insider information from printworks employees and a Merrill Lynch analyst, and traded shares through online accounts belonging to friends and family including a Croatian seamstress and a New York stripper.
Mr Smith, a high school friend of Mr Pajcin, pleaded guilty in August to passing information to the pair last year when he was serving on a federal grand jury, a panel of private citizens set up to decide whether investigators had enough evidence to charge executives at Bristol-Myers.
Prosecutors said Mr Pajcin thought Bristol-Myers shares would fall based on a tip from Smith that a top company official would be charged with a crime, a tip which proved to be incorrect. "What I did was a terrible mistake," Smith told the court. "I'm ashamed."
Formal charges are yet to be laid against Mr Plotkin and Mr Pajcin. Stanislav Shpigelman, the former Merrill Lynch analyst, has admitted disclosing insider information on a pending acquisition. Nickolaus Shuster, a former worker at a Wisconsin printing plant, pleaded guilty in October to leaking details of share tips in Business Week before the magazine was distributed.
- 1 No secularism please, we're British
- 2 Apple admits it has a human rights problem
- 3 'Drunk tanks' and minimum prices to help Britain sober up
- 4 Working as a jail torturer ruined my life
- 5 Lightning kills an entire football team
- 6 Reinstate Knox's murder charge, Italian court told
- 7 Caught in his own blast: an Iranian targeting Israel
- 1 Spotify: 1 million plays, £108 return
- 2 How Koscielny became prince of the Emirates
- 3 Apple admits it has a human rights problem
- 4 Mark Steel: If religion is 'marginal', I'm the Pope
- 5 No secularism please, we're British
- 6 Lightning kills an entire football team
- 7 Matthew Norman: There's always the Human Rights Act, Trevor
- 8 Special report: The hungry generation
- 9 I was born to be a killer. Every night I see the Devil in my dreams
- 10 Six Grammys, five years off: Adele puts love before career
Free trial of new Independent iPad app
Get your daily dose of the best of British journalism, sponsored by American Airlines
Win a three-week coastal jaunt
Spend three weeks exploring every nook and cranny of gorgeous Atlantic Canada.
Amazing restaurant offers
Three glasses of free champagne and a special menu at 46 top London restaurants.
Latest Independent competitions
Win anything from gadgets to five-star holidays on our competitions and offers page.
Commercial thought leaders
Watch the best in the business world give their insights into the world of business.
Career Services
Day In a Page
How an abortion divided America
Did they all live happily ever after? That's up to you...




Comments