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!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags cybercrimelegalsoftwarefinanceapplication developmentindustry verticalsintellectual propertygoldman sachs

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

Brand Post

PC World Evaluation Team Review - MSI GT75 TITAN

"I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it."

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?