Goldman Rats Go After HFT Program Thief
I still can't believe Goldman actually admitted that they own a piece of technology that could be "dangerous" in the wrong hands. You bastards are slipping, you're supposed to act nonchalant about your devastating trading activities. Pfft. (Said Zero Hedge: "At least it is refreshing that none other than Goldman's own de facto attorney admits that the firm has created a piece of code that permits "market manipulation." So much win.)
A former Goldman Sachs Group programer was indicted on charges he stole computer code for the investment bank's high-frequency trading platform, federal prosecutors said on Thursday.
The former programer, Sergey Aleynikov, 40, was arrested and charged in July. The three-count indictment alleges that Aleynikov, who worked at Goldman from May 2007 to June 2009, illegally transferred and downloaded "hundreds of thousands of lines of source code for Goldman's high-frequency trading system" on his last day at the firm.
Aleynikov, according to the indictment, then uploaded the source code onto a laptop computer that he took with him to a meeting in Chicago with his new employer, Teza Technologies LLC, a high-frequency trading start-up.
Agents with the Federal Bureau of Investigation arrested Aleynikov at Newark Liberty International Airport upon his return from Chicago. He was held in custody over the July 4 holiday weekend before posting bail.
Aleynikov's arrest is credited with shining a spotlight on fast-growing business of high-frequency trading, a computer-driven strategy that is said to be responsible for more than half of the daily trading volume in U.S. stocks.
The indictment said Goldman's high-frequency platform generates "many millions of dollars in profits per year." Goldman acquired some of the platform in 1999, when it paid $500 million for Hull Trading Co and has since made major improvements to the system.
*cough* Let's channel Skeptical CPA (September 2009):
GSG [Goldman Sachs] is the "victim" here. Boil Aleynikov in oil, without trial. Two days later. See spot. See spot run. See FBI. See FBI run. McSwain, haven't you anything important to do? Like figure out what to arrest Lloyd Blankfein for? Or John Mack? Look, you'll likely find something. "Badly damaged"? Is damage an element of a crime? Or a tort? Facciponti seems confused. Why astonished Harvey? This is GSG, not Joe Schmoe complaining GSG defrauded him. GSG looks vulnerable. If GSG's program is 1,224 megabytes, what then? Federal Rule of Evidence (FRE) 106 states, "When a writing or recorded statement or part therof is introduced by a party, an adverse party may require the introduction at that time of any other part or any other writing or recorded statement which ought in fairness to be considered contemporaneously with it". Shroff, see "Dr. Strangelove" (1964) and mount a "doomsday" defense. Introduce all 1,224 megabytes. If I were Judge Crotty I would grant your motion. Let the jury inspect GSG's code. Why not? It's evidence. Soon the whole world will have it. Barney Frank may even look. GSG, you may have bitten off more than even you can chew here. No bail? Is Aleynikov a Cali drug cartel "capo", or Mullah Omar? Aleynikov, go to trial. Shroff, if you need money, start an Alenynikov defense fund. You might get more than you think.
So, GSG? Is the code evidence? If so, let's see what you're working with. Ooooh, dangerous Goldman Rat code, I'm shaking in my Pumas over here at the thought of it.