NEW YORK A former Goldman Sachs Group Inc analyst who pleaded guilty to running an insider trading scheme and later fled while on probation has been ordered to pay nearly $27.8 million.
In an opinion released late Wednesday, U.S. District Judge Kimba Wood directed David Pajcin to pay a $7.72 million default judgment plus $20.05 million in fines, in a civil lawsuit filed by the U.S. Securities and Exchange Commission.
Pajcin pleaded guilty in April 2006 to securities fraud and conspiracy for orchestrating a $6.7 million insider trading ring.
Prosecutors said the ring traded on leaks about mergers, market-moving media reports, and a grand jury probe involving the drugmaker Bristol-Myers Squibb Co.
People who leaked information included a Merrill Lynch & Co analyst, workers at a printing plant for BusinessWeek magazine, and a New Jersey postal worker who sat on the grand jury.
Pajcin was sentenced in January 2008 to time served and three years of probation after cooperating with investigators, but soon violated his probation. An arrest warrant was issued in April 2008, court records show.
Wood said Pajcin failed to respond to three amended SEC complaints, and his whereabouts remain unknown.
It is unclear whether Pajcin now employs a lawyer. Paul Lieber, a lawyer who has represented Pajcin in the past, on Thursday said he no longer does. Jesse Siegel, who represented Pajcin in the criminal case, did not immediately return a call seeking comment.
Pajcin is the nephew of Sonja Anticevic, a retired Croatian seamstress whose brokerage accounts he used to execute the illegal trades, regulators said.
Last month Wood threw out a $5.72 million default judgment that the SEC won against Anticevic, after she retained a Croatian lawyer for her defense. Anticevic is believed to be in her late 60s and living on a low income.
The case is SEC v. Anticevic et al, U.S. District Court, Southern District of New York, No. 05-06991.
(Reporting by Jonathan Stempel; editing by John Wallace)