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DA press release on Aleynikov charges

DA press release on Aleynikov charges

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Published by bkatzoom

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Published by: bkatzoom on Aug 09, 2012
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08/09/2012

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 DISTRICT ATTORNEY 
 – 
NEW YORK COUNTY FOR IMMEDIATE RELEASE CONTACT: Erin Duggan August 9, 2012 212-335-9400
FORMER GOLDMAN SACHS PROGRAMMER CHARGED WITH ILLEGALLY  TAKING PROPRIETARY COMPUTER CODE
Manhattan District Attorney Cyrus R. Vance, Jr., today announced the arrest andarraignment of SERGEY ALEYNIKOV, 42, on a felony complaint charging him withaccessing and duplicating a complex proprietary and highly confidential computer sourcecode owned by Goldman Sachs, a New York-based financial institution. ALEYNIKOV, aformer computer programmer for Goldman Sachs, was charged in New York County Criminal Court with Unlawful Use of Secret Scientific Material and Unlawful Duplication of Computer Related Material.
1
 
 This code is so highly confidential that it is
known in the industry as the firm‟s „secret
sauce
,”‟
said District Attorney Vance.
Employees who exploit their access to sensitiveinformation should expect to face criminal prosecution in New York State in appropriatecases
.”
  According to the complaint and statements made on the record in court, ALEYNIKOV wasemployed by Goldman Sachs as a computer programmer from 2007 until 2009. His jobresponsibilities included developing and maintaining computer programs used to operate the
bank‟s
high-frequency trading system, which allowed Goldman Sachs traders to make a large volume of trades in securities, commodities, and options based on trading decisions executedin fractions of a second. Trades are executed on the basis of algorithms that incorporatedata from rapid market developments and past trades. Goldm
an Sachs‟ programmers
created its high-frequency trading system to maintain a competitive advantage.In April 2009, ALEYNIKOV gave notice of his intent to quit his job at Goldman Sachs. The defendant had accepted a job offer from Teza, a trading firm in Chicago, where he wasto be responsible for developing a high-frequency trading system to compete with GoldmanSachs.
1
 
 The charges contained in the complaint are merely allegations, and the defendant is presumed innocent unlessand until proven guilty.
 
CYRUS
 
R.
 
VANCE,
 
JR.
D
ISTRICT
 A
TTORNEY
 

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