The Sri Lankan-born billionaire founder of Galleon Group, Raj Rajaratnam, was convicted of fraud and conspiracy in May and is to be sentenced in September. The former analyst with Moody's Investors Service is accused of passing tips about upcoming deals to the Galleon Group hedge fund, according to the US Securities and Exchange Commission.
Shah has "failed to appear, answer, plead or otherwise defend" against the SEC's complaint, US federal judge Jed Rakoff said in a judgment filed on Tuesday in a New York court.
The judge ordered Shah to pay a penalty of $24.6 million and to disgorge profits of $8.2 million plus interest of $1.76 million.
The SEC said earlier this year that it had located Shah in Mumbai but that he had not responded to its lawsuit.
According to the SEC, Shah received money for providing information about two deals involving private equity funds in 2007: Blackstone's acquisition of Hilton hotels and Hellman & Friedman'