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Ex-Goldman Programmer Gets One Count Tossed in Case Over Software Theft
Former Goldman Sachs Group Inc. computer programmer Sergey Aleynikov, accused of stealing trading software from the bank, won dismissal of a count of unauthorized computer access, one of three charges he faces.
Aleynikov was arrested in July 2009 and indicted Feb. 11 in what a prosecutor said was the “most substantial” theft that New York-based Goldman could recall. U.S. District Judge Denise Cote, in Manhattan, ruled today that two charges would remain -- theft of trade secrets and transportation of stolen property in foreign commerce.
Cote said that because Aleynikov was authorized to work on Goldman’s software when he is alleged to have stolen a copy, he can’t be charged with unauthorized access.
“Unless an individual lacks authorization to access a computer system, or exceeds the authorization that has been granted, there can’t be a violation” of the law, Cote said.
The programmer stole a code for Goldman’s high-frequency trading business on his last day at the bank in June 2009, prosecutors said in the indictment. Aleynikov had argued that the judge should throw out all the charges because the acts described by prosecutors don’t constitute crimes.
“We’re very gratified that the court found no basis that Mr. Aleynikov violated a theft of computer access,” Kevin Marino, Aleynikov’s lawyer, said in a telephone interview. “We are nevertheless puzzled by the court’s conclusion that Goldman’s high-frequency trading platform was a product produced for interstate commerce,” Marino said.
He said he’s considering whether to ask for permission to appeal that aspect of Cote’s ruling before the case moves ahead.
Cote has scheduled a Nov. 29 trial date for Aleynikov, who has pleaded not guilty, Marino said. Yusill Scribner, a spokeswoman for Manhattan U.S. Attorney Preet Bharara, declined comment.
The case is U.S. v. Aleynikov, 1:10-cr-00096, U.S. District Court, Southern District of New York (Manhattan).
To contact the reporter on this story: Patricia Hurtado in New York at pathurtado@bloomberg.net; Bob Van Voris in New York federal court at rvanvoris@bloomberg.net.
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