Analyst 'flattered,' 'intimidated' into plot

Feb 27, 2007 @ 2:20 pm

By Aaron Siegel

Former Merrill Lynch & Co. Inc. analyst Stanislav Shpigelman said he was "deceived, intimidated and flattered" into leaking illegal information to his friends at Goldman Sachs Group Inc., according to a New York Post report.

Mr. Shpigelman was accused of providing tips for collaborators and former Goldman Sachs analysts David Pajcin and Eugene Plotkin to trade on.

A former mergers and acquisition analyst, Mr. Shpigelman was sentenced to 37 months in prison last month for his role in the insider trading plot.

In papers seeking leniency, Mr, Shpigelman's lawyer Mary Mulligan said that his initial mistake in providing illegal information was compounded when his associates used intimidation and deception to increase his involvement in the plot.

His lawyer argued that over the life of the eight-month scheme he pocketed just $10,000.

"The combination of the intimidation brought to bear by Mr. Plotkin and Mr. Pajcin, and Mr. Shpigelman's desire to stay in [their] good graces led him to agree to provide them with additional information," Ms. Mulligan wrote in a brief.

She added that immediately prior to their arrest, the pair agreed to leave him alone if he would help them "one more time."

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