Judge Clears Alleged "Goldman Sachs Spy" Sergey Aleynikov Of One Charge

sergey aleynikov

Sergey Aleynikov, the Goldman Sachs employee who was charged last year with stealing one of the firm’s algorithms, just escaped one of the charges against him.

A judge cleared the “Goldman Sachs spy” of wrongly accessing a computer.

From Bloomberg:

[The judge] said that because Aleynikov was authorised to work on Goldman’s software when he is alleged to have stolen a copy, he can’t be charged with unauthorised access.

Aleynikov’s lawyers believe it’s a sign of what’s to come in court on November 29, when the two other charges against him, theft of trade secrets and transportation of stolen property in foreign commerce, will be decided. Aleynikov has pleaded not guilty to all charges.

Aleynikov had argued that the judge should throw out all the charges because the acts described by prosecutors don’t constitute crimes.

Of course Goldman disagrees and the court will decide on November 29.

Aleynikov’s was the first high-profile case of a firm discovering alleged theft of new trading software, algorithms, which are firm-specific. There have been several since.

On his last day at Goldman, Aleynikov allegedly copied hundreds of thousands of lines of source code for Goldman’s high-frequency trading system, transferred them to an outside server in Germany, and then flew to Chicago to meet with a new employer, which would hire him to oversee a competing trading system, says the Wall Street Journal. When he went to work for the new employer, he allegedly brought Goldman source code with him.

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