The article below juxtaposes two alleged cheating opportunities.
Former Goldman Programmer Guilty of Code Theft, Levin Still ProbesRead the article here
by Agustino Fontevecchia - Forbes.com
A high frequency trading developer looks at 10 years behind bars for stealing proprietary code.
Goldman Sachs may have finally caught a break from the constant heat it's been getting, as a jury in New York found former programmer Sergey Aleynikov guilty of stealing proprietary code used for high-frequency trading. It wasn't all cheers for Goldman, though, as an investigation carried on by Senator Carl Levin (D-MI) called the investment bank's CDS activities abusive.
Aleynikov, a 40-year old Russian immigrant, faces 10 years in prison after Judge Denise Cote read the verdict which found the former Goldman Sachs ( GS - news - people ) programmer guilty of stealing code used in high-frequency trading. Aleynikov was arrested over the fourth of July weekend in 2009 at Newark Liberty International Airport in Newark, N.J.
Federal agents accused Aleynikov of uploading Goldman's source code, a proprietary piece of information considered a trade secret, into a German server. Aleynikov was leaving the investment bank for Chicago start-up, Teza Technologies. The high-frequency trading firm reportedly offered Aleynikov $1.5 million in compensation, nearly three times as much as Goldman Sachs.
The programmer, who allegedly was to use the code to develop a trading platform at Teza, claimed he made a mistake as he was trying to download open source code. Aleynikov, who holds dual Russian-U.S. citizenship, was placed under home confinement and electronic monitoring, after he posted bail.
It wasn't time to uncork champagne bottles at Goldman Sachs. The firm headed by Lloyd Blankfeinwas being investigated by Senator Carl Levin for its credit default swap trading activities during the run-up to the market free-fall caused by Lehman Brothers ( LEHMQ - news - people )' collapse.Emails from the head of Goldman Sachs' asset-backed securities trading desk, Michael Swenson, during the subprime mortgage crisis show that he urged his traders to "start killing the shorts in the street" and "cause maximum pain." Levin accused the investment bank of engaging in a so-called short-squeeze strategy, which would drive the markets in favor of Goldman.