Insider trading co-operator 'flees US'
5 November 2008
A former analyst at Goldman Sachs who had been cooperating with federal authorities after being convicted for his role in a $6.7 million insider trading ring is believed to have fled the United States, according to official papers.
Documents filed in court on November 3rd by Scott Black, a lawyer with market regulator the Securities and Exchange Commission, said David Pajcin is in violation of his probation.
Both federal prosecutors and his criminal defense team believe he is no longer in the country, they added.
Mr Pajcin pleaded guilty to charges including conspiracy, perjury and insider trading in January.
He and five others had traded stocks based on a range of insider tips. They included leaks from two printing company workers in Wisconsin who disclosed companies being named in upcoming issues of Business Week and information on pending mergers and acquisitions provided by an associate working at Merrill Lynch.
The group also included a New Jersey mailman who leaked details of a grand jury investigation he was sitting on involving Bristol-Myers Squibb.
Mr Pajcin had been sentenced to time served, given a three-year supervised release and ordered to forfeit $6.7 million.