Would-Be Hedge Fund High-Frequency Programmer Gets Three Years

Mar 1 2011 | 5:24am ET

Samarth Agrawal, the former Société Générale trader convicted of stealing the bank’s high-frequency trading code for use at his new hedge fund job, has been sentenced to three years in prison.

Agrawal, an Indian citizen, had faced up to eight years in prison on the theft of trade secrets and transporting stolen property charges. His lawyer has asked that he be credited with time served; the former trader has been in jail since he was arrested last April.

“In the case of this defendant, we have an essentially good guy who did something very bad,” U.S. District Judge Jed Rakoff said in imposing sentence.

For most of his trial last year, Agrawal denied any wrongdoing. But towards the end of it, he admitted that he took the code and shared it with hedge fund Tower Research Capital, where he was seeking—and won—a job. Tower has denied it hired Agrawal to gain access to the SocGen code.

The 27-year-old  was convicted in November. He faces deportation to his native India upon his release.


In Depth

'Smart Beta' Funds In Regulators' Sights, Hedgies May Be Next

Mar 26 2015 | 11:11am ET

Funds that mimic strategies used by active managers for a fraction of the cost could...

Lifestyle

Study: Both Marriage and Divorce Lead to Negative Hedge Fund Performance

Mar 25 2015 | 6:51pm ET

Trouble at home leads to trouble in the market for fund managers, according to researchers...

Guest Contributor

The Life Settlement: Yield For The Investor And Cash For The Consumer

Mar 31 2015 | 6:48am ET

Investors are languishing in a yield-starved, low-interest rate environment, looking...

 

Sponsored Content

    Mar 9 2015 | 6:35am ET

    Kelly RodriquesKelly RodriquesAs more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…

Editor's Note