Nickolaus Shuster, 25, worked in the printing works for a company which published 'Business Week' magazine. The New York Times reports that he entered a plea in Federal Court in Manhattan on Tuesday, admitting that he was hired in October 2004 by two former Goldman employees, Eugene Plotkin and David Pajcin, to steal pre-publication issues of the magazine so that the bankers could trade ahead of time in some of the shares tipped by the magazine to prosper.
Shuster will forfeit the $20,000 he earned in the scheme (which made $340,000 in all), and is likely to co-operate with US prosecutors in their efforts against the two ex-Goldman staffers. Plotkin and Pajcin are accused of making $6.7m in a series of illegal insider scams, the largest of which involved a former Merrill Lynch M&A analyst, who leaked information about deals his unit was working on.
Both Goldman Sachs and Merrill Lynch have been co-operating with the proper authorities.