Missing Ex-Goldman Analyst Told To Pay $27.7m He Hasn't Got

Bloomberg reports that a US District Judge ordered former Goldman analyst David Pajcin, a man of Croatian origin who appears to have disappeared off the face of the earth and who is not known to be wealthly, $27.7m for his role in a $6.7m insider trading scam.

Pajcin was one of 6 men convicted in a 2005 insider trading case which saw his former Goldman colleague Eugene Plotkin sentenced to 57 months in clink. Pajcin got off lightly, having co-operated with the authorities. He was basically sentenced to time served (around 2 years), but was then required to report to a probation officer each month. He disappeared last year, and an arrest warrant was issued for him in November.

US District Judge Kimba Wood has now ordered that, if he can be found (and if he has the money), he should pay $7.7m in a default judgement and $20m in civil penalties. The judge also banned Pajcin from the securities industry for life.

Finally, The Wall Street Journal reports that former Merrill Lynch financial advisor Steven Mandala has been sentenced to 2 - 6 years in prison Wednesday, after earlier pleading guilty to fraud.

29-year-old Mandala managed to con Merrill Lynch into giving him a job in 2009. The broker lied about his qualifications and forged pay stubs and tax returns, tricking Merrill into believing that he was a top-notch broker who earned $765,000-a-year.

Mandala told Merrill that he was a partner at Maxim Group, managing $300m in assets and producing commissions of $1.5m-a-year, when in fact he was a lowly broker there. As part of his joining package, Merrill extended Mandala a $780,000 loan, which he used to live it up and buy a Ferrari. He quit after 2 months, and didn't repay the loan.

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