Goldman Trader Gone Bad: Settlement Edition

Thursday, August 13, 2009 , , , 6 Comments




Hey remember when the world was supposed to end over the Goldman boy gone bad who stole GS code to take over the world?

Pfft.

Via Securities Industry News:

A settlement is the most likely outcome of the Goldman Sachs code theft case, according to securities law experts.

That could be the ripple effect of a ruling by a U.S. District Court judge on Monday, who ruled that Goldman Sachs must provide former vice president Sergey Aleynikov with access to personnel records from his time at the company.

A deal is the most efficient and effective result for both the firm and its former employee, said Harvey Pitt, former chairman of the U.S. Securities and Exchange Commission, now chief executive officer of Washington, D.C.-based consulting firm Kalorama Partners LLC.

Aleynikov was arrested July 3 for allegedly copying 32 megabytes of proprietary Goldman Sachs software, saving it on a server in Germany and transferring the code to a home computer. He had started a new job at a technology startup the previous day.

Settlement seems to be Aleynikov’s objective. Aleynikov attorney Sabrina Shroff in court Monday said she wants to use the file to negotiate a possible deal. Goldman Sachs declined to comment.

A deal is the most likely outcome, since it doesn't look like any actual damage was done to Goldman Sachs, according to a second legal expert, and the Monday ruling is a blow to Goldman Sachs.

Aleynikov's attorney won in court to receive a copy of his "permanent file" though what good that might do is entirely lost on me seeing as how I am not fluent in legalese. Perhaps one of my law-inclined readers would care to enlighten me as to why this little detail might be important?

Good news, I guess, in that the world hasn't imploded and the fragile machinery chugs ever onward. Goldman comes out with a little bruise and is still scandalous as ever.

As Skeptical CPA might say... bah!

Jr Deputy Accountant

Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.

6 comments:

Junior:
I am following this story. I think Pitt, the worst SEC chairman in my lifetime, is a Goldman shill. Pitt seems to be trying to convince Aleynikov to settle. Why? Who will benefit? If I were Aleynikov, I would force the case to trial. A trial Goldman and its SDNY "poodle" can't afford.

"Pop"

Anonymous said...

It is beginning to seem like anyone can stand up to GS in court and force them to back down. Perhaps they don't want to take a chance any courtroom open to the public would veer into uncharted territory and shatter their informational stone wall.

Anonymous said...

Goldman is mirage of success underpinned by access to information and insider dealing.

They don't dare stand up in court... like vampires they can't live in the light.

Anonymous said...

GS frontruns *EVERYTHING* JR.

What better way to manage upcoming HFT disclosure than to invoke victim status.

Unfortunately, this did not turn out according to script and since Aleynikov didn't end up in Gitmo, watch Blankfiend & co. want to make this thing disappear ASAP and q-u-i-e-t-l-y....

Anonymous said...

They don't want to disclose any details that are kept in employee's records. From what I hear rumors/comments from management make it to these files and become a crucial part for the employee's career. They don't want anybody to know all the tabs they keep in their employees because their affraid of lawsuits or on others emulating their "innovative" approach for career development

Pop,

Do you know the story of Mike Morgan? The man had a HEART ATTACK for the love of God while he was fighting these pricks over GoldmanSachs666 - and what did they do? Try to bankrupt him. They knew they didn't have a chance in court and sued him anyway, trying to play with his lawyers to draw it out as long as possible. I agree that Aleynikov should take it to trial. But you and I both know that he won't (and I believe we know why?).

Anon @ 3:44, this is because Goldman knows how fucked up they are. They got punked by Barney Frank for $60 mil! Come on now! They don't care, that's nothing to them.

Anon @ 2:39, shouldn't that read "vampire squid" in the light? ;) you are correct.

Ohhh Anon @ 6:42p, you and I both know that. They are frontrunning the 2012 Presidential campaign as we speak. They are probably frontrunning your grandchildren that you don't have. The act is getting old and pretty soon they're going to run out of rope. Only enough left to hang themselves. And yes, LB would LOVE to see this go away. It will. But you saw it, right? So did I. I have the memory of an elephant and the mouth like a bullhorn so we'll see who backs down first.

Anon @ 5:06p I would LOVE to see what they have to say about Aleynikov. won't happen though. oh well.

Anon