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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.”

In the legal world, a “possible disposition” means a deal.

Now it could be that prosecutors want to get Aleynikov to plead guilty so he can provide evidence against other potential defendants. But I don’t think that’s the case here.

To date, there’s no evidence that Aleynikov shared any of the illegally obtained “source code” with his new employers at Teza Technologies, an upstart high-frequency trading firm founded by former Citadel Investment Group 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.

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