Ex-Goldman Coder's Acquittal Threatens Wall Street's IP

By Max Stendahl (February 17, 2012, 1:54 PM EST) -- The Second Circuit's Thursday reversal of a former Goldman Sachs Group Inc. programmer's conviction on charges he stole the firm's trading system code may hamper Wall Street's ability to protect lucrative trade secrets under the Economic Espionage Act, attorneys said.

In a one-page order, the appeals court overturned Sergey Aleynikov's conviction on charges of trade secrets theft and interstate transportation of stolen property. Federal prosecutors claim Aleynikov stole a confidential, high-frequency trading code from Goldman to benefit his new employer, startup fund Teza Technologies LLC.

Aleynikov was convicted in December 2010 and sentenced March 18 to more than eight years in...

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