New York Times examines link betwen Goldman Sachs and FBI


A former trader for Goldman Sachs was arrested last month for allegedly stealing code from his employer. The resulting case, as Alex Berenson writes in today's New York Times, offers "a glimpse into the turbulent world of ultrafast computerized stock trading." One aspect in particular is the government's role in the case, and how what would normally considered a civil infraction has been handled by the criminal authorities, including the FBI. 

Harvey A. Silverglate, a criminal defense lawyer in Boston not involved in the case, said he was troubled that the F.B.I. had arrested Mr. Aleynikov so quickly, without evidence that he had made any effort to use or sell the code. Such disputes are generally resolved civilly rather than criminally, Mr. Silverglate said.

“It is astonishing that the F.B.I. arrested this defendant at all,” he said. Other firms have also sued former employees recently over concern about high-frequency trading software, though two similar cases are the subject of civil suits rather than criminal prosecution.

Read on at nytimes.com.

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