Man who stole Goldman Sachs code gets 8-year sentence

The programmer stole source code to the company's high-frequency trading system

A former Goldman Sachs computer programmer has received a stiff prison sentence for stealing source code used in the company's high-frequency trading system.

Sergey Aleynikov was sentenced Friday in U.S. District Court for the District of New York to 97 months in prison. A Manhattan jury in December found him guilty of stealing trade secrets from the New York investment bank.

Aleynikov had worked on the Goldman Sachs system for two years, when he took a job with another company, Chicago's Teza Technologies in 2009. There he was set to start working on a similar electronic trading system. On his last day at Goldman Sachs -- June 5, 2009 -- the programmer started encrypting source code files and then uploading them to a server in Germany.

During his trial, Aleynikov maintained that these were open-source files that he was allowed to copy and that he'd downloaded to meet an aggressive six-month development timetable set by Teza's management.

In an affidavit filed in connection with the case U.S. Federal Bureau of Investigation Special Agent Michael McSwain said that Aleynikov had moved about 32MB of Goldman Sachs code to the German server in the last few days before he resigned. His Teza job was to pay him about three times the US$400,000 annual salary he made at Goldman Sachs, the complaint said.

Aleynikov was arrested on July 3, after meeting with Teza. Investigators found the Goldman Sachs code on his computer and another storage device.

The system that Aleynikov worked on was derived from electronic trading technology Goldman Sachs acquired in its 1999 $500 million purchase of Hull Group.

Robert McMillan covers computer security and general technology breaking news for The IDG News Service. Follow Robert on Twitter at @bobmcmillan. Robert's e-mail address is robert_mcmillan@idg.com

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags application developmentintellectual propertygoldman sachslegalfinancesoftwareindustry verticalscybercrime

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Robert McMillan

IDG News Service
Show Comments

Father’s Day Gift Guide

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Matthew Stivala

HP OfficeJet 250 Mobile Printer

The HP OfficeJet 250 Mobile Printer is a great device that fits perfectly into my fast paced and mobile lifestyle. My first impression of the printer itself was how incredibly compact and sleek the device was.

Armand Abogado

HP OfficeJet 250 Mobile Printer

Wireless printing from my iPhone was also a handy feature, the whole experience was quick and seamless with no setup requirements - accessed through the default iOS printing menu options.

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?