Wednesday, 22 October 2014
Last updated 50 min ago
Feb 21 2012 | 1:21am ET
A former Goldman Sachs group programmer's conviction for stealing the bank's high-frequency trading software has been thrown out by a federal appeals court.
Sergey Aleynikov was freed Thursday after serving almost one year of an eight-year prison sentence. He was convicted in December 2010 of theft of trade secrets for allegedly having dowloaded parts of Goldman's HFT code on his last day at the firm in 2009 to bring with him to a new job at Teza Technologies, the controversial firm founded by several former Citadel Investment Group traders.
The U.S. Court of Appeals in Manhattan did not immediately explain its decision to vacate Aleynikov's conviction—it said a formal opinion would follow—but during oral arguments in the case on Feb. 16, the three-judge panel expressed skepticism of Aleynikov's prosecution under the Economic Espionage Act.
Nor do the appeals court judges seem to think much of the government's chances in the matter going forward, agreeing to allow the U.S. Attorney's Office in Manhattan to seek a rehearing of the appeal after initially barring any challenge to its decision.
"Justice occasionally works," Aleynikov said after he was released on his own recognizance.
"It's justice because Sergey Aleynikov did not commit either of the crimes with which he was charged," his lawyer, Kevin Marino, said. "The government's attempt to stretch this criminal federal statute beyond all recognition resulted in a grave injustice that put Sergey Aleynikov in prison for a year."
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...