Feeds

Ex-Goldman Sachs coder cuffed on fresh 'source theft' charges

Programmer cleared of wrongdoing faces new charges

Beginner's guide to SSL certificates

A Goldman Sachs programmer cleared six months ago of stealing the source code to the bank’s high-frequency trading system has been re-arrested and charged.

The Manhattan district attorney has now accused Sergey Aleynikov, 42, of unlawfully using secret scientific material and unlawfully duplicating computer-related material.

In February Aleynikov overturned a conviction on federal charges that claimed he stole trade secrets from his employer, mega-bank Goldman Sachs. During the appeal hearing, his lawyer Kevin Marino argued Aleynikov had been incorrectly charged under the Economic Espionage Act (EEA).

The appeals court ruled in Aleynikov's favour, finding that taking source code is not a crime under federal law, which instead makes it illegal to steal trade secrets, and that the code didn’t qualify as stolen goods under another federal law.

Aleynikov, a naturalized US citizen from Russia, worked for Goldman Sachs between 2007 and 2009, and built software that takes advantage of small arbitrage opportunities in stock prices by placing millions of trades in a matter of seconds.

Aleynikov was recruited by trading firm Teza Technologies to develop similar high-frequency trading software and he gave notice to Goldman Sachs in April 2009.

The NY state complaint alleges Aleynikov transferred “hundreds of thousands of lines of source code for Goldman Sachs’ high-frequency trading system to a foreign server; that code included trading algorithms used to determine the value of stock options".

In the original case, brought by the US government in 2009, Aleynikov said he thought he was only taking open-source code, and hadn’t realised any proprietary code was included. That defence was rejected by the trial judge and Aleynikov was sentenced in December 2010 to eight years in prison, with three under supervised release and a $12,500 fine.

Commenting on the latest charges, DA Cyrus Vance said on Thursday: “This code is so highly confidential that it is known in the industry as the firm’s ‘secret sauce'… employees who exploit their access to sensitive information should expect to face criminal prosecution in New York State in appropriate cases." ®

Remote control for virtualized desktops

More from The Register

next story
Regin: The super-spyware the security industry has been silent about
NSA fingered as likely source of complex malware family
Why did it take antivirus giants YEARS to drill into super-scary Regin? Symantec responds...
FYI this isn't just going to target Windows, Linux and OS X fans
Privacy bods offer GOV SPY VICTIMS a FREE SPYWARE SNIFFER
Looks for gov malware that evades most antivirus
Patch NOW! Microsoft slings emergency bug fix at Windows admins
Vulnerability promotes lusers to domain overlords ... oops
HACKERS can DELETE SURVEILLANCE DVRS remotely – report
Hikvision devices wide open to hacking, claim securobods
'Regin': The 'New Stuxnet' spook-grade SOFTWARE WEAPON described
'A degree of technical competence rarely seen'
Home Office: Fancy flogging us some SECRET SPY GEAR?
If you do, tell NOBODY what it's for or how it works
Syrian Electronic Army in news site 'hack' POP-UP MAYHEM
Gigya redirect exploit blamed for pop-rageous ploy
prev story

Whitepapers

Seattle children’s accelerates Citrix login times by 500% with cross-tier insight
Seattle Children’s is a leading research hospital with a large and growing Citrix XenDesktop deployment. See how they used ExtraHop to accelerate launch times.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
How to determine if cloud backup is right for your servers
Two key factors, technical feasibility and TCO economics, that backup and IT operations managers should consider when assessing cloud backup.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Business security measures using SSL
Examines the major types of threats to information security that businesses face today and the techniques for mitigating those threats.