Judge Seems Unlikely To Toss Case Against Accused Goldman Software Thief

Jun 17 2013 | 2:19pm ET

Sergey Aleynikov's hopes of avoiding a second trial for allegedly stealing Goldman Sachs' high-frequency trading code appear slim after a Friday court hearing.

Aleynikov's lawyer sparred with New York Supreme Court Justice Ronald Zwiebel over the charges against his client, which he said should be thrown out. Kevin Marino asked Zwiebel to throw out statements Aleynikov made to the Federal Bureau of Investigation after his 2009 arrest, as well as the whole case against him.

"Suppress all this evidence and dismiss this indictment as a product of that unlawful arrest," Marino asked, saying the FBI did not have probable cause to arrest Aleynikov. But Zwiebel appeared no more inclined to do so than the federal judge who oversaw Aleynikov's 2010 conviction on similar charges.

Some of Marino's arguments were "not relevant," Zwiebel said. The judge also took umbrage at Marino's suggestion that he did not understand the lawyer's arguments, saying, "If you don't think so, you can take a seat, because I understand what you're saying."

Aleynikov's federal conviction—and the eight-year prison sentence it carried—were thrown out by a federal appeals court last year, after it found that violating Goldman's rules was not the same as violating the law.

The Manhattan District Attorney's office then brought charges, alleging, as the federal prosecutors had, that Aleynikov downloaded parts of Goldman's HFT software on his last day at the bank to bring with him to a new job at Teza Technologies, the controversial firm founded by several former Citadel Investment Group traders. If convicted, he faces up to four years in prison.

Aleynikov has rejected a no-jail deal in the state case, Marino has said.

In Depth

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…