Tuesday, 9 February 2016
Last updated 20 hours 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."