Federal investigators have charged three people, including an investment banker atMerrill Lynch, who passed tip-offs about a string of giant takeover deals.
The investigators set out details of an elaborate scheme for buying and using secret information, whose cast of characters stretches from printworks employees in Wisconsin and private investors in Germany to an exotic dancer in New York.
Goldman Sachs suspended Eugene Plotkin, 26, a junior analyst in its fixed-income research business yesterday. He is accused of leading the scheme, along with David Pajcin, 29, who worked at the investment bank in 2001.
The pair are alleged to have made $300,000 from trading shares tipped in Business Week, after bribing an employee at the magazine’s printing firm. But the scam went into a different league when they began bribing Stanislav Shpigelman, 23, a mergers and acquisitions analyst at Merrill Lynch.