FirmNo.90875INTHECIRCUITCOURTOFCOOKCOUNTY,ILLINOISCOUNTYDEPARTMENT,CHANCERYDIVISIONCITADELLLC,
))
Plaintiff,
)
)
vs.
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No.
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YIHAOBENPU,
)
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Defendant.
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VERIFIEDCOMPLAINTFORINJUNCTIVEANDOTHERRELIEFPlaintiffCitadelLLC("Citadel"),foritsVerifiedComplaintforInjunctiveandOtherRelief("Complaint")againstDefendantYihaoBenPu("Pu"),allegesasfollows:INTRODUCTION1.CitadelrecentlydiscoveredthatPu,aQuantitativeFinancialEngineerinCitadel'stacticaltradingbusiness,installedunauthorizedprogramsonCitadel'scomputersystemstobypasssecuritymeasuresthatpreventthetransferofCitadelinformationtoexternaldevices.WhileCitadel'sinvestigationofPu'sconductisnotcomplete,CitadelhasalreadydiscoveredthatPuusedthisillegalsecuritybypasstotransfermassiveamountsofhighlyconfidentialinformationrelatingtothecoreofCitadel'stacticaltradingbusinesstoatleasttwopersonalexternaldevicesinviolationofPu'sNon-DisclosureAgreement,theIllinoisTradeSecretsActandCitadelpoliciestowhichPuagreedtobebound.2.PuhasrepeatedlyliedtoCitadelabouthisactivitiesandhaspurposefullydestroyedevidenceinordertothwartCitadel'sinvestigation,despitePuhavingreceivedexpressinstructionsfromCitadelanditscounseltopreserveallrelevantevidence.Moreover,PuhasbeeninveryrecentdiscussionswithaCitadelcompetitor-boththrougharecruiteranddirectly
duringthecourseofCitadel'sinvestigation.Theprincipalofthecompetitor,MikhailMalyshev,isaformerseniorCitadelemployeewhowasfoundbyacourttohaveliedunderoath,destroyedevidencepotentiallyshowingthetheftofCitadeltradesecrets(forwhichhewassanctioned$2.2million),andiscurrentlyunderindictmentforfelonyperjury.3.Theimmediatepurposeofthislawsuitistosecuretemporaryandpreliminaryinjunctiverelief(i)tomaintainthestatusquo,(ii)topreventfurthermisappropriationandpotentialuseofCitadel'stradesecretsandconfidentialinformation,(iii)tosecureCitadel'stradesecretsandotherpotentiallyrelevantevidencefromPuandpotentiallycomplicitthirdpartiesthroughexpediteddiscovery,and(iv)toevaluatetheextentoftheharmsufferedthusfarbyCitadel.AbsentthereliefrequestedinthisComplaintanditsaccompanyingfiling,CitadelwillsufferirreparableharmasaresultofPu'smisappropriation,andpotentialuseof,Citadel'sconfidentialandtradesecretinformation.
1
JURISDICTION
ANDVENUE
4.JurisdictionisappropriateinCookCountybecausePuisaresidentofCookCounty,Illinois,andbecausehesignedaNon-DisclosureAgreement,amongotheragreements,expresslyprovidingforjurisdictionandvenueofactionssuchasthisoneinthecourtsofCookCounty,Illinois.5.VenueisproperinthisCourtbecauseallorasubstantialpartoftheeventsgivingrisetotheseclaimsoccurredinthiscounty,includingPu'sbreachesandthreatenedbreachesofdutiesowedtoCitadel.Inaddition,PuexpresslyacknowledgedinmultipleagreementswithCitadelthatthisCourtisanappropriatevenue.
1Citadeland
Pu
arepartiestoaMediation!ArbitrationAgreement,butthatagreementexpresslyauthorizesCitadeltosecuretemporaryandpreliminaryinjunctivereliefinacourtofcompetentjurisdiction.
2
CITADELANDTHETACTICALTRADINGBUSINESS
6.CitadelisaDelawarelimitedliabilitycompanywithitsprincipalplaceofbusinessinChicago,Illinois.Citadelisafinancialinstitutionwhosebusinessesincludealternativeinvestments,marketmaking,capitalmarkets,andtechnology-relatedproductsandservices.OneofCitadel'sbusinessesisknownasTacticalTrading("TT").Citadel'sTTbusinessdeploysautomatedelectronictradingstrategiesthatfocusonusingmathematicalandstatisticalcomputermodels,whicharetranslatedintoalgorithms,toidentifyshort-terminvestmentopportunitiesinglobalequities,futures,andotherinvestmentinstruments.7.Citadel'sTTbusinesscreatesandappliesmathematicalandstatisticalmodelsinordertofindandinvestinshort-terminvestmentopportunities.Citadel'sTTmodelsdescribeparticularstatisticalrelationshipsamonginvestmentinstrumentsand/orinvestmentactivities.Thesemodelsaretranslatedintoalgorithmsandintegratedintocomputersourcecodeandelectronictradingprogramsthatautomaticallyexecutetradingordersupontheoccurrenceofcertaineventsinthemarkets.8.Citadel'sTTgroupemployshighlyeducatedandtechnicallyskilledpeople,anumberofwhomareresearcherswithPh.Dsinmathematics,physics,andotherfields.TheTTgroupincludesindividualswhofocusonquantitativeresearch,otherswhofocusontheinformationtechnologysideofthebusiness,andsomewhodoboth.Thequantitativeresearch("QR")teamidentifiesthestatisticalrelationshipsthatcangenerateprofitableinvestments;theinformationtechnology("IT")teamworkswiththequantitativeresearcherstoturnthoserelationshipsintoexecutablecomputercode.Together,Citadel'sQRandITteamscreatevaluableintellectualproperty("IP:')thathasgeneratedsignificantreturnsforCitadel'sinvestors.9.ThebuildingblocksofCitadel'sTTtradingalgorithmsandstrategiesarepredictionsignals,commonlyreferredtoasalphas.Thesepredictionsignals,oralphas,are3
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