A former Goldman Sachs Group Inc. analyst who fled while on probation for leading a $6.7 million insider trading scheme was ordered to pay a $27.7 million judgment in a lawsuit filed by federal regulators.
U.S. District Judge Kimba Wood in Manhattan said David Pajcin is in default because he did not respond to three amended civil complaints filed by the Securities and Exchange Commission.
Judge Wood ruled that Pajcin, one of six convicted in the case, should pay $7.7 million in a default judgment and $20 million in civil penalties. She also granted the SEC's request to ban him from the securities industry.
A warrant for Pajcin's arrest was issued when he disappeared in 2008 after helping prosecutors convict his accomplices and serving about two years in prison.
Pajcin, of Clifton, N.J., traded on leaks from a Merrill Lynch & Co. analyst and workers at a factory printing BusinessWeek magazine, the U.S. said.
He cooperated with prosecutors soon after the government opened a probe in 2005 and pleaded guilty in 2006. He was sentenced in January 2008 to about two years in prison. Pajcin stopped reporting to his probation officer and the arrest warrant was issued in November 2008.
