Accused Goldman Software Thief Will Be Tried Again

May 1 2013 | 1:09pm ET

The former Goldman Sachs programmer accused of stealing the bank's high-frequency trading code will have to stand trial again.

A New York State judge ruled that a second prosecution of Sergey Aleynikov would not violate the constitutional prohibition against double jeopardy. Aleynikov was convicted in federal court in 2010 of downloading parts of Goldman's HFT software on his last day at the firm to bring with him to a new job at Teza Technologies, the controversial firm founded by several former Citadel Investment Group traders.

But last year a federal appeals court threw out Aleynikov's conviction and eight-year prison sentence, ruling that violating a firm's rules is not the same as violating the law.

"We remain confident that Mr. Aleynikov will be exonerated," Marino said.

Judge Ronald Zwiebel dismissed Marino's arguments that a second prosecution would be "vindictive" and that his client had "suffered enough."

"Without disputing the defendant's accomplishments, or rejecting their significance, his contributions do not justify dismissal of charges," Zwiebel wrote. "This was not a victimless crime. Clearly, Goldman Sachs and their clients are victims of defendant's actions."

If convicted again, Aleynikov faces up to four years in prison.


In Depth

Q&A: Fund Administration Comes To The Cloud

Jul 14 2017 | 7:23pm ET

The fund administration sector has been steadily implementing new technology, such...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Maglan Capital: Some Lessons Learned From Puerto Rico

Jul 13 2017 | 8:00pm ET

Although Maglan Capital has not been invested in Puerto Rico for more than three...