A former Goldman Sachs Group Inc. programmer was convicted in a split verdict of stealing the bank’s “secret sauce” high-frequency trading code, ending a tumultuous trial but leaving open the chance the yearslong saga could continue.
A New York state court jury in Manhattan on Friday convicted Sergey Aleynikov on one count and acquitted him on another. The jury was unable to reach a decision on a third count. Justice Daniel Conviser dismissed the jury Friday afternoon. Mr. Aleynikov, 45 years old, faces the possibility of up to four years in prison.
The conviction was the second time in five years a jury concluded that Mr. Aleynikov stole portions of Goldman’s computer code. He was convicted in federal court in 2010, but acquitted by an appellate court in 2012. Manhattan District Attorney Cyrus R. Vance Jr. charged him under state laws in 2012.
The latest trial was marked by the arcane and the bizarre. Jurors appeared to struggle with how to interpret and apply laws designed well before the computer age, asking several times for charges to be read and for definitions of various words. Midway through deliberations one juror accused another of poisoning her lunch. Both were dismissed by the judge.
Even the trial arguments were unusual. Both sides agreed Mr. Aleynikov stole the data. But the defense argued he didn’t break the law, just Goldman’s confidentiality policy. Mr. Aleynikov’s lawyer, Kevin Marino, repeatedly accused prosecutors of acting in bad faith, prompting outrage from the district attorney’s office.
Mr. Marino said the split verdict was proof the jury didn’t understand the charges, and that Justice Conviser shouldn’t have allowed the jury to deliberate over a case whose core debate is a legal matter, not a factual one.
“You’ve had a jury struggling with this because they’re performing a judicial function they’re ill-equipped to perform,” Mr. Marino said.
Mr. Vance praised the verdict and said his office would continue to pursue similar cases to “ensure the integrity and fairness of our marketplaces.”
“By allowing individuals, corporations, and government entities to safeguard valuable information, we are encouraging and supporting the research, innovation, and entrepreneurship that is so important to our city in an increasingly competitive digital and global market,” Mr. Vance said in a statement.
Mr. Aleynikov emerged as a hero in some circles, in part because of his prominent feature in Michael Lewis’s best-selling book “Flash Boys,” about high-speed trading. Some in legal circles felt his second prosecution was overly aggressive, making Friday’s verdict a victory for Mr. Vance, if an incomplete one. But, as with the first trial, the verdict may not be the end for Mr. Aleynikov.
Justice Conviser said Friday that he would rule within six weeks on a defense motion to dismiss the case on grounds of legal insufficiency. The judge has previously appeared to express doubt about whether the decades-old state law under which Mr. Aleynikov was charged applies to his conduct. The defense also could appeal if the judge rules against the motion.
The appeals court had acquitted Mr. Aleynikov because it said federal law didn’t apply to the case. Some legal analysts took that ruling as an invitation for the Manhattan district attorney’s office to charge him under state laws, a move that didn’t trigger double jeopardy immunity.
Mr. Aleynikov served a year in prison after his first conviction. He went through a divorce and lost his career as the case has unfolded. He walked around the courtroom anxiously after the verdict was read Friday and the jury had left. On Friday, the judge released him from bail conditions and said he wasn’t a flight risk.
The trial was unusual in that both sides almost entirely agreed on the facts, but disputed whether New York state law applies. Two of the charges accuse Mr. Aleynikov of unlawfully using secret scientific material to appropriate the “major portion” of its economic value, and a third charged him ...
Well, stealing source code from your former employer right as you start a gig paying 3x as much is going to result in some personal and professional ramifications. What he did was unethical and stupid.
When I was learning Erlang (2009), I did benefit from some of his tutorials on OTP, though.
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[ 3.0 ms ] story [ 26.5 ms ] threadA New York state court jury in Manhattan on Friday convicted Sergey Aleynikov on one count and acquitted him on another. The jury was unable to reach a decision on a third count. Justice Daniel Conviser dismissed the jury Friday afternoon. Mr. Aleynikov, 45 years old, faces the possibility of up to four years in prison.
The conviction was the second time in five years a jury concluded that Mr. Aleynikov stole portions of Goldman’s computer code. He was convicted in federal court in 2010, but acquitted by an appellate court in 2012. Manhattan District Attorney Cyrus R. Vance Jr. charged him under state laws in 2012.
The latest trial was marked by the arcane and the bizarre. Jurors appeared to struggle with how to interpret and apply laws designed well before the computer age, asking several times for charges to be read and for definitions of various words. Midway through deliberations one juror accused another of poisoning her lunch. Both were dismissed by the judge.
Even the trial arguments were unusual. Both sides agreed Mr. Aleynikov stole the data. But the defense argued he didn’t break the law, just Goldman’s confidentiality policy. Mr. Aleynikov’s lawyer, Kevin Marino, repeatedly accused prosecutors of acting in bad faith, prompting outrage from the district attorney’s office.
Mr. Marino said the split verdict was proof the jury didn’t understand the charges, and that Justice Conviser shouldn’t have allowed the jury to deliberate over a case whose core debate is a legal matter, not a factual one.
“You’ve had a jury struggling with this because they’re performing a judicial function they’re ill-equipped to perform,” Mr. Marino said.
Mr. Vance praised the verdict and said his office would continue to pursue similar cases to “ensure the integrity and fairness of our marketplaces.”
“By allowing individuals, corporations, and government entities to safeguard valuable information, we are encouraging and supporting the research, innovation, and entrepreneurship that is so important to our city in an increasingly competitive digital and global market,” Mr. Vance said in a statement.
Mr. Aleynikov emerged as a hero in some circles, in part because of his prominent feature in Michael Lewis’s best-selling book “Flash Boys,” about high-speed trading. Some in legal circles felt his second prosecution was overly aggressive, making Friday’s verdict a victory for Mr. Vance, if an incomplete one. But, as with the first trial, the verdict may not be the end for Mr. Aleynikov.
Justice Conviser said Friday that he would rule within six weeks on a defense motion to dismiss the case on grounds of legal insufficiency. The judge has previously appeared to express doubt about whether the decades-old state law under which Mr. Aleynikov was charged applies to his conduct. The defense also could appeal if the judge rules against the motion.
The appeals court had acquitted Mr. Aleynikov because it said federal law didn’t apply to the case. Some legal analysts took that ruling as an invitation for the Manhattan district attorney’s office to charge him under state laws, a move that didn’t trigger double jeopardy immunity.
Mr. Aleynikov served a year in prison after his first conviction. He went through a divorce and lost his career as the case has unfolded. He walked around the courtroom anxiously after the verdict was read Friday and the jury had left. On Friday, the judge released him from bail conditions and said he wasn’t a flight risk.
The trial was unusual in that both sides almost entirely agreed on the facts, but disputed whether New York state law applies. Two of the charges accuse Mr. Aleynikov of unlawfully using secret scientific material to appropriate the “major portion” of its economic value, and a third charged him ...
When I was learning Erlang (2009), I did benefit from some of his tutorials on OTP, though.