Ex-Two Sigma Analyst Indicted For Alleged Code Theft

Mar 12 2014 | 11:41am ET

A former Two Sigma Investments analyst has been indicted for stealing the hedge fund's proprietary models.

Kang Gao, a Chinese national, faces 11 counts of computer trespass, unlawful duplication of computer-related material, criminal possession of computer-related material and unauthorized use of secret scientific material. He pleaded not guilty.

According to the Manhattan District Attorney's Office, Gao used a decompiler to access models he was not permitted to view and then sent those and other Two Sigma data to a personal e-mail account. According to Two Sigma, which has also sued Gao, he planned to use the information, either at a new job or to start his own business in China.

"The protection of trade secrets, such as computer source codes and trading methods, is critical to building and maintaining financial expertise," Cyrus Vance, the Manhattan D.A., said.

"Two Sigma takes the protection of our intellectual property very seriously," Kelly Howard, a spokeswoman for the firm, said. "We became aware of potential felony criminal activity of an employee, promptly informed the Manhattan District Attorney and terminated his employment."


In Depth

Bob Doll's Ten Market Predictions For 2016

Jan 7 2016 | 9:37pm ET

Well-known market strategist Robert Doll has published his annual list of ten predictions...

Lifestyle

Citadel's Ken Griffin Donates $40M To New York's Museum of Modern Art

Dec 22 2015 | 9:23pm ET

Citadel founder Ken Griffin has donated $40 million to New York’s Museum of Modern...

Guest Contributor

Hedge Fund Marketing - Making the Most of Your Salesperson

Jan 20 2016 | 8:11pm ET

In this contributed article, Bruce Frumerman of Frumerman & Nemeth takes a close...