Ex-Goldman Sachs insider trader to pay $27.8m

7 June 2010

A US judge has ordered a former Goldman Sachs trader who pleaded guilty to managing an insider trading ring to pay $27.8 million in penalties, a news report has claimed.

Reuters quoted a filing from the Securities and Exchange Commission (SEC), which stated that David Pajcin must pay the sum.

Up to $20.05 million of the figure is made up of fines while the remainder is a default judgement, the documents revealed.

During 2006 the former banker pleaded guilty to leading an insider trading ring, which is thought to have made $6.7 million in profits between 2004 and 2007.

He used the accounts of his aunt Sonja Anticevic through which to launder money and carry out some of the illegal transactions.

She won a ruling against the SEC in May, which had implicated her in the criminal activity of Mr Pajcin.

In an address to the Kimba Wood, US judge, who was quoted by Bloomberg, said: “Anticevic made a good faith effort to respond to the court’s July 2009 order.”

“Further, the court notes that Anticevic is a foreigner and likely not familiar with the US legal system and court procedures.”

The current whereabouts of the former banker are not known.

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