Post by jannikki on May 12, 2006 18:37:34 GMT -4
New Jersey man arrested in insider trading case
Thu May 11, 2006 12:32 PM ET
NEW YORK, May 11 (Reuters) - U.S. authorities arrested a New Jersey man on Thursday, charging him with insider trading for tipping two previously accused Wall Street analysts over the progress of a federal grand jury probe involving drugmaker Bristol-Myers Squibb Co. (BMY.N: Quote, Profile, Research)
Jason Smith, 29, leaked information he learned while serving on the jury to former Goldman Sachs Group Inc. (GS.N: Quote, Profile, Research) employees Eugene Plotkin and David Pajcin, prosecutors said.
The Goldman analysts disclosed the leaked information to others, and traded in Bristol-Myers shares, expecting them to decline, prosecutors said.
A lawyer for Smith could not immediately be reached for comment.
Authorities previously accused Plotkin and Pajcin of leading an insider trading ring that took in more than $6.7 million of illegal profits.
Prosecutors said the pair received tips on pending mergers from a Merrill Lynch & Co. (MER.N: Quote, Profile, Research) investment banker, Stanislav Shpigelman, in return for a share trading profits.
They said the ring made at least $6.4 million from trading on news of upcoming mergers, including Procter & Gamble Co.'s (PG.N: Quote, Profile, Research) acquisition of Gillette Co. and Adidas' (ADSG.DE: Quote, Profile, Research) purchase of Reebok International Ltd.
Prosecutors said Plotkin and Pajcin also pocketed $340,000 of illicit gains from trading in about 20 stocks, after bribing two Wisconsin printing plant employees to tip them about companies mentioned favorably in advance copies of McGraw-Hill Cos.' (MHP.N: Quote, Profile, Research) BusinessWeek magazine.
These arrests broadened a case that began last August, when regulators grew suspicious of trading profits by retired 63-year-old Croatian underwear factory worker Sonja Anticevic.
Pajcin, Anticevic's nephew, is cooperating with authorities.
today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-05-11T163219Z_01_N11255723_RTRIDST_0_CRIME-INSIDERTRADING.XML
Thu May 11, 2006 12:32 PM ET
NEW YORK, May 11 (Reuters) - U.S. authorities arrested a New Jersey man on Thursday, charging him with insider trading for tipping two previously accused Wall Street analysts over the progress of a federal grand jury probe involving drugmaker Bristol-Myers Squibb Co. (BMY.N: Quote, Profile, Research)
Jason Smith, 29, leaked information he learned while serving on the jury to former Goldman Sachs Group Inc. (GS.N: Quote, Profile, Research) employees Eugene Plotkin and David Pajcin, prosecutors said.
The Goldman analysts disclosed the leaked information to others, and traded in Bristol-Myers shares, expecting them to decline, prosecutors said.
A lawyer for Smith could not immediately be reached for comment.
Authorities previously accused Plotkin and Pajcin of leading an insider trading ring that took in more than $6.7 million of illegal profits.
Prosecutors said the pair received tips on pending mergers from a Merrill Lynch & Co. (MER.N: Quote, Profile, Research) investment banker, Stanislav Shpigelman, in return for a share trading profits.
They said the ring made at least $6.4 million from trading on news of upcoming mergers, including Procter & Gamble Co.'s (PG.N: Quote, Profile, Research) acquisition of Gillette Co. and Adidas' (ADSG.DE: Quote, Profile, Research) purchase of Reebok International Ltd.
Prosecutors said Plotkin and Pajcin also pocketed $340,000 of illicit gains from trading in about 20 stocks, after bribing two Wisconsin printing plant employees to tip them about companies mentioned favorably in advance copies of McGraw-Hill Cos.' (MHP.N: Quote, Profile, Research) BusinessWeek magazine.
These arrests broadened a case that began last August, when regulators grew suspicious of trading profits by retired 63-year-old Croatian underwear factory worker Sonja Anticevic.
Pajcin, Anticevic's nephew, is cooperating with authorities.
today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-05-11T163219Z_01_N11255723_RTRIDST_0_CRIME-INSIDERTRADING.XML