Ex-Goldman analyst might have fled US after sentencing
NEW YORK - A former Goldman Sachs Group Inc. analyst who led a $6.7 million insider-trading scheme and then helped prosecutors convict his accomplices is in violation of his probation and may have left the country, a lawyer said.
David Pajcin, one of six men convicted in the case, traded on leaks from a Merrill Lynch analyst and workers at a factory printing Business Week magazine. Pajcin pleaded guilty, cooperated with prosecutors, and was sentenced in January to about two years in prison - time he'd already served.
Pajcin, who according to prosecutors has family in Croatia, was required to remain under court supervision for three years after being released. In a letter Monday to a judge in a related civil case by the Securities and Exchange Commission, Scott Black, an SEC trial lawyer, said the US 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 to US District Judge Kimba Wood.
Pajcin stopped reporting to his probation officer several months ago, and a judge has issued a warrant for his arrest, Siegel said yesterday.
"I have no idea where he is," Siegel said, adding that Pajcin faces additional jail time for violating his probation. Siegel said he never said that Pajcin had fled the country.
Black declined to comment yesterday and Rebekah Carmichael, a spokeswoman for US Attorney Michael Garcia, didn't have an immediate comment. Pajcin's lawyer in the SEC case, Paul Lieber, said he hasn't spoken to his client in 2 1/2 years.
Pajcin masterminded a wide-ranging insider-trading plot that operated from mid-2004 to mid-2005 and included trades of Reebok shares, according to the indictment and a court filing last year by Eugene Plotkin, a former colleague. Plotkin is serving a five-year prison sentence in the case.
Pajcin and Plotkin traded on tips from Stanislav Shpigelman, a former merger analyst at Merrill, whom they recruited in a 2004 meeting at a lower Manhattan sauna. A New Jersey mailman also leaked them news from a grand jury on which he was serving, and two workers at a Wisconsin printing plant told them the names of companies about to appear in Business Week magazine.
Pajcin began cooperating with federal investigators soon after they opened a probe in 2005. "Pajcin came in very early in the process and aided the government," Assistant US Attorney Helen Cantwell said at his sentencing. He pleaded guilty in 2006 to conspiracy, lying to regulators, and obtaining confidential data.