You’ll remember that Yihao Ben Pu, the 24 year-old former quant engineer at Citadel, was arrested last month for attempting to steal confidential information from the hedge fund’s trading systems.Brief refresher: the ex-tech employee at Ken Griffin’s Citadel was charged with stealing the secret alpha codes and transferring them to external devices, ABC WLS in Chicago reported.
Well, in the case against him, a remarkable detail about how authorities found the evidence to arrest him has emerged.
From ABC WLS:
He was arrested after an associate of his told the company and federal agents some of the evidence had been dumped into a sanitary canal near Wilmette Harbor. Divers discovered computer equipment in the water that contained Citadel’s alphas.
First of all, that sounds like a scene out of a James Bond movie.
Second, water didn’t damage the info on the hardware? Guess that’s why Zvi Goffer’s genius methods of destroying a tainted cell phone didn’t work.
And third, how did the former Harvard research intern and Cornell graduate manage to be all smiles when he appeared in court?
Clearly the court system and/or Citadel is going after him hardcore.
And, during that court appearance, he had to agree to put his family home in Massachusetts up as bond.
This case reminds us of the trade secret theft executed by programmer Sergey Aleynikov, who used to work for Goldman Sachs writing algorithms.
Aleynikov was found guilty of stealing Goldman’s high-frequency proprietary trading algorithms.
He was sentenced in December to 8 years.
If you haven’t learned by now, after you’ve seen the efforts that their former firms launched against Aleynikov, Samarth Agrawal, and Mikhail Malyshev, that firms with proprietary trading info are paranoid about people stealing it and will go to dramatic lengths to not only recover it, but prosecute the crap out of you, we suggest you learn it now.