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Sergey strikes back


The case of Sergey Aleynikov, the former Goldman Sachs programmer charged with stealing some of the top secret code to the investment bank’s high-frequency trading program, is going on the offensive.

Aleynikov has filed a subpoena on his former employer, seeking access to some information–mainly his personnel file. And Goldman has responded by filing a motion in federal court to quash the subpoena. Goldman filed its motion on Aug. 6, a source familiar with the matter says.

A hearing on Goldman’s motion to put the kibosh on Aleynikov’s request for documents will be heard Monday afternoon beofre Judge Paul Crotty.

The hearing on Aleynikov’s motion comes as the attorney for the former Goldman employee and federal prosecutors continue to work towards trying to reach a potential plea deal in the case.

Will Sergey cut a deal?


It looks like federal prosecutors may be trying to cut a deal with alleged Goldman Sachs high-frequency trading code stealer Sergey Aleynikov.

Today was the day for prosecutors to indict Aleynikov, who was arrested on July 3 on the theft charges. But in a court filing, prosecutors told the presiding magistrate judge that they need another 14 days to continue discussions with Aleynikov’s lawyer about a “possible disposition.”

Don’t mess with Goldman


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.

Chez Sergey


Earlier today, my Reuters colleague Steve Eder posted about his journey Sunday to the New Jersey mansion of alleged Goldman Sachs trading code thief Sergey Aleynikov. And what a home it is.

It appears Sergey and his family recently moved into a brand spanking new McMansion in North Caldwell, NJ. As I pointed out last week, North Caldwell just happens to the same town that Tony Soprano was supposed to reside in. And the house Sergey bought isn’t much smaller than Tony’s.

Meet Jason, a former Sergey colleague


Jason is one of the more than 100 programmers working on the secret sauce code that drives Goldman Sachs’ automated trading systems–also known as high-frequency trading.

How do I know? Well it says so here, on a Goldman promotional web page, where “real” employees for the firm talk about their jobs and their lives.

Goldman should disclose more


Goldman Sachs doesn’t report second-quarter earnings until Tuesday, but some Wall Street analysts aren’t waiting to sing the giant investment firm’s praises.

What’s impressing the analysts the most is Goldman’s ability to again print money like no one else — especially when it comes to trading stocks, bonds, commodities and currencies. Bank of America analyst Guy Moszkowski sounded almost giddy the other day in predicting blowout trading revenues for Goldman, describing the firm as “arguably the most well-respected investment bank.” Moszkowski now expects net trading revenues to top the record $25 billion raked in by Goldman in 2007.

Citadel joins the Sergey fray


Ken Griffin’s Citadel Investment Group just filed a lawsuit against former top trader Misha Malyshev for apparently violating a non-compete agreement he signed when leaving the big Chicago hedge fund earlier this year. Malyshev, of course, is the founder of Teza Technologies, an upstart high-frequency trading hedge fund that hired away alleged Goldman Sachs code-cracker Sergey Aleynikov.

Malyshev and his partners, all former Citadel people, put out a statement on Tuesday saying they suspended Aleynikov after learning of his July 3 arrest. The former Citadel guys also say they were unware of Aleynikov’s alleged theft of Goldman’s proprietary trading computer code.

Is Goldman Sachs evil?


Is Goldman Sachs really a “vampire squid wrapped around the face of humanity”?

That’s the view of journalist Matt Taibbi in a long article in Rolling Stone magazine. Taibbi blames the firm for almost single-handedly orchestrating every investment calamity since the Great Depression. And judging by much of the reaction in the blogosphere, Taibbi’s view has become the accepted meme when talking about Goldman.

Sergey in the land of Tony


So it seems alleged Goldman Sachs code breaker Sergey Aleynikov doesn’t live in the tiny town of Little Falls, NJ as every one thought. It appears Aleynikov and his wife still own a house in Little Falls but it’s up for sale and vacant.

For the moment at least, Aleynikov, who was sprung from federal prison late Monday, is living in a home in North Caldwell, NJ. Now for fans of the TV show the Sopranos, that town should sound familiar because it’s where Tony and his family were supposed to live.

Sergey and Misha


The name of the Chicago firm that hired alleged Goldman code-cracker Sergey Aleynikov is out and it’s a name you’ve probably never heard of before. That’s because Teza Technologies LLC is a new firm–formed in May–by former Citadel Investment Group trader Misha Malyshev.

Malyshev, who had been a top high-frequency trader at Citadel, left the giant hedge fund in February because he felt he was not being sufficiently compensated, says a source familiar with the situation. Malyshev’s group was one of the more profitable last year for Ken Griffin’s operation, which overall had one of its worst years ever in 2008