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Goldman v. Ex-Programmer, Round II

January 22, 2013

[ by Melanie Gretchen ]

Goldman Sachs's former computer programmer Sergey Aleynikov is being prosecuted again for allegedly copying proprietary Goldman code in 2009 and taking it with him to a high-frequency trading start-up.  The last time this case saw the inside of a courtroom, it was in federal court;  this time, Manhattan Assistant District Attorney Joanne Li is taking Mr. Aleynikov in federal court on the grounds that he clearly violated state laws prohibiting the improper taking of computer material.

The Case Thus Far. The New Jersey programmer spent a year in prison until 2nd U.S. Circuit Court of Appeals tossed his conviction out last year and ordered him released.  Before Manhattan Supreme Court Justice Ronald Zweibel issues a ruling in court on 2/1/5/13, the parties have argued the following:

  • Manhattan Assistant District Attorney Joanne Li argued that the 2nd Circuit's ruling was based on elements in the federal statutes that are not part of the state laws, which means the case falls under an exception to the double jeopardy rule.  Nevertheless, statutes were intended to prevent individuals from copying material for their own personal gain.
  • Defense attorney Kevin Marino on Friday said Aleynikov should not have to defend himself again for the same conduct that led to the federal case.  Moreover, state statutes don't apply because his client had the right to access and copy the code.

"There is a word for this prosecution, and it is inhuman. He's lost his home.  He's lost his family. He's lost every penny he's ever saved ... the reality is, Sergey Aleynikov has suffered enough." -- Mr. Marino, before the court.

The case: People v. Aleynikov, New York State Supreme Court, New York County, No. 60353/2012.

For further details, go to [Reuters, 1/18/13].