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Don’t mess with Goldman

July 24, 2009

Poor Sergey Aleynikov.

The former Goldman Sachs programmer who allegedly stole some of the Wall Street firm’s top secret proprietary trading code picked the wrong firm to mess with–really. If Aleynikov had been an employee of UBS, he might only be facing a civil lawsuit right now–not federal criminal charges.

In March, nearly four months before Goldman ran to federal prosecutors with their concerns about Aleynikov, UBS was in New York State Supreme Court filing a civil lawsuit against three former employees, charging them with doing much the same thing the ex-Goldman employee did. The only difference is no criminal charges have been filed against the three former UBS employees.

The UBS lawsuit was first reported in June by Dealbreaker.com, after going unnoticed for several weeks. It’s getting more attention now in the wake of the Goldman case, which has begun to shed light on the importance of so-called high frequency trading strategies to Wall Street firms.

In the UBS lawsuit, which is still pending, UBS alleged that Jatin Suryawanashi, Partha Sarkar and Sanjay Girdhar took “source code for UBS’ trade secret algorithmic trading programs.” The Swiss-based investment bank further alleged the ex-employees intended to use the information in their new prop trading jobs at Jefferies & Company.

Ever since news of Aleynikov’s arrest broke on July 4th weekend, there have been serious questions about whether federal prosecutors reacted so swiftly only because the alleged victim was Goldman. The absence of any criminal charges against the former UBS employees only adds to the suspicion that Aleynikov is getting disparate treatment.

To be sure, every case is different. And there may be facts in the UBS incident that render it a purely civil matter. In fact, the former UBS employees are trying to force the dispute out of state court and into arbitration, claiming it stems from an employment issue.

The ex-UBS employees, like Aleynikov, deny doing anything wrong.

If you recall, at Aleynikov’s bail hearing, his attorney suggested that offense he was charged with was really more of a civil matter than a criminal one. Obviously, federal prosecutors disagreed.

But Aleynikov is due back in court on Aug. 3–the deadline for prosecutors to indict him. It will be interesting to see what happens on that day, especially if the matter with the UBS three remains a civil case.

Comments

After reading that article in Rolling Stone about Goldman Sachs, all I can say is that they are really nasty. Really big time scammers.

Posted by Robert | Report as abusive
 

@ Robert

Or, they’re just the best there is at playing the game. Don’t hate them because they’ve got their sh*t together while everyone else is disorganized.

 

They dont play the game. They own your government and ensure that they will never fail as long as the US taxpayer is viable to take on more debt to bail out their mistakes. Its easy to make money when you are stealing 10′s of billions in many direct and indirect ways.

The thing is this kind of breathtaking greed from a bunch of people who produce nothing of value, in fact only destroy wealth with their day to day operation in order to suck as much money out of the economy as possible can never be sustain. Therefore unless GS is excised from the US government they will simply destroy the US in their attempt to feed their greed.

These people and their cheer leaders are vile people. Andrew Jackson (1829-1837) knew what he was dealing with in terms of these bankers. Obama does not have a clue and they control him.

“Gentlemen, I have had men watching you for a long time and I am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country. When you won, you divided the profits amongst you, and when you lost, you charged it to the bank. You tell me that if I take the deposits from the bank and annul its charter, I shall ruin ten thousand families. That may be true, gentlemen, but that is your sin! Should I let you go on, you will ruin fifty thousand families, and that would be my sin! You are a den of vipers and thieves.”

Andrew Jackson
Timeless words

Goldman Sachs is all our sin if we allow it to continue

Posted by Ryan | Report as abusive
 

“The bold effort the present (central) bank had made to control the government … are but premonitions of the fate that await the American people should they be deluded into a perpetuation of this institution or the establishment of another like it.”

“I am one of those who do not believe that a national debt is a national blessing, but rather a curse to a republic; inasmuch as it is calculated to raise around the administration a moneyed aristocracy dangerous to the liberties of the country.”

“If Congress has the right under the Constitution to issue paper money, it was given to be used by themselves, not to be delegated to individuals or corporations.”

“You are a den of vipers and thieves. I intend to rout you out,
and by the grace of the Eternal God, will rout you out.”

Andrew Jackson

It seems I guess nothing really changes. But now we are over run. Time to make a change before its too late.

Posted by Ryan | Report as abusive
 

Robot or android or artificial intelligence machinery trading in the market at inhuman speed…The future is here, and like any shift of humanity some will prosper while many flounder. Wars are fought on this scale of change particularly when the speed of change is too sudden. When someone boils it down and appropriately sloganizes the situation, what some brand class warfare will look like buds having beers together in the back yard. Goldman could be a forward thinker in this vein and maybe become the benevolent single payer health provider. For that they could “earn it, the old fashioned way.”

Posted by DanO | Report as abusive
 

And eventually all you have is machines trading a meaningless market.

What you need is wealth, this does not create wealth.

Posted by Ryan | Report as abusive
 

It is just sickening that the bankers, the real organized crime families, can steal trillions and not only are not prosecuted by the FEDs, but reimbursed for their losses. Then the FEDS choose to go after a nobody that supposedly stole some software from the organized crime family. Of course the puppets will do whatever the Puppet masters want.

This is like guys who robbed a bank and then crashed their car in the getaway and the money is burned up. Instead of being prosecuted and sent to jail, they are reimbursed for their hospital expenses, reimbursed for the car that was lost and then the money that was burned up was replaced and given to them for their inconvenience to help them get back on their feet.

The US has gone from a land of the Free and home of the brave to the land of the policed and the land of the fleeced. I have located a nice place in Costa Rica and am leaving this corrupt and criminal state. Hasta la Vista Baby. Good luck in the Falling Empire.

Posted by David Allen | Report as abusive
 

“Don’t hate them because they’ve got their sh*t together…”

By that, of course, you mean using the discount window-the trough to which they’ve recently been granted access-to finiance oil speculation.

Posted by Andrew | Report as abusive
 

GS makes billions with big brains !! Now that’s laughable.

The Golden Boys have planters in every corner of the Federal government. Most recently in the State Department with an UnderSecretary of State for International Finance. They introduce or scrub every piece of finacial legislation or regulation that’s come forward in at least 15 years.

Following the first Great Depression, the Pujo Commission unearthed the incestuous relationship between government/retail/investment banking for full public review. Reforms followed.

Now we have Rolling Stone magazine as our Pujo Commission.

How sad for America.

Posted by rayman in CA | Report as abusive
 

GOLDMAN SACHS Writes To The President…. A LETTER of THANKS.

http://pacificgatepost.blogspot.com/2009  /07/goldman-sachs-thank-you-mr-presiden t.html

……. And the circus continues, with Taxpayer singing the tune.

 

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