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Mudiripoyina Bewarse
Username: Blazewada
Post Number: 4033
Registered: 08-2008
Posted From: 220.255.7.222
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Votes: 0 (Vote!) | | Posted on Wednesday, July 08, 2009 - 3:48 am: |
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New York: Goldman Sachs Group Inc may lose its investment in a proprietary trading code and millions of dollars from increased competition if software allegedly stolen by a former employee gets into the wrong hands, a prosecutor said.
Sergey Aleynikov, an ex-Goldman Sachs computer programmer, was arrested July 3 after arriving at Liberty International Airport in Newark, New Jersey, US officials said. Aleynikov, 39, who has dual American and Russian citizenship, is charged in a criminal complaint with stealing the trading software. Teza Technologies LLC, a Chicago-based firm co-founded by a former Citadel Investment Group LLC trader, said it suspended Aleynikov, who started there on July 2.
At a court appearance July 4 in Manhattan, Assistant US Attorney Joseph Facciponti told a federal judge that Aleynikov’s alleged theft poses a risk to US markets. Aleynikov transferred the code, which is worth millions of dollars, to a computer server in Germany, and others may have had access to it, Facciponti said, adding that New York-based Goldman Sachs may be harmed if the software is disseminated.
“The bank has raised the possibility that there is a danger that somebody who knew how to use this programme could use it to manipulate markets in unfair ways,” Facciponti said, according to a recording of the hearing made public on Monday. “The copy in Germany is still out there, and we at this time do not know who else has access to it.”
The prosecutor added, “Once it is out there, anybody will be able to use this, and their market share will be adversely affected.”
The proprietary code lets the firm do “sophisticated, high- speed and high-volume trades on various stock and commodities markets,” prosecutors said in court papers. The trades generate “many millions of dollars” each year.
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