Sunday, 1 February 2015
Last updated 1 day ago
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."
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…