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

Malik: The Science of Deal Sourcing 201

Aug 27 2015 | 5:35pm ET

Deal sourcing is understandably a hot topic among private equity firms because it...

Lifestyle

Rolling Art Advisors Marketing Collectible Car Fund As Uncorrelated Alternative

Aug 27 2015 | 6:47pm ET

A new fund is trying to provide investors with greater access to an emerging asset...

Guest Contributor

FATCA for Hedge Funds: Eight Common Pitfalls

Sep 1 2015 | 10:56am ET

FATCA is now a way of life for those in the financial industry and most professionals...

 

Editor's Note