Ex-SocGen trader found guilty of copying HFT code

TraderJoe is giving an opinion that you should not only ignore, but take care to believe the exact opposite. Indian background checking is indeed behind the standards in the West, but that is changing, and even today it's a risk not worth taking. One can go off the grid

As Andy says, this is something that can happen to anyone here.
I detect an uptick in the lengths companies will go to safeguard what they think of as their intellectual property, so the odds are not moving in your favour.

Be aware that there exist companies whose speciality is finding 'lost' data. Merely deleting files is not enough.

Seeing as part of the issue is "taking code home", I will repeat the our standard P&D advice for algotraders.

Go through the disk of your home computer, identifying files you want to keep that have nothing to do with your current employment.

Copy them to a USB stick, and only copy those files.
Backup saved passwords for gmail and other online accounts.

Check that your online accounts don't contain notes from your employment.

Put on safety glasses.
Extract the hard disk from your computer , and hit it repeatedly with a hammer until the disk itself is broken. *Do not* try microwaving the disk or heating it up in any other way. Just don't, OK ?
Ditto chemicals. I've worked as a chemist and know how to do this safely, you don't.

Papers may of course be burned, but be aware that most shredders do not shred paper beyond repair. A few years back a Canadian bank accidentally shredded the wrong bags of cheques, within a couple of weeks they had them again.

USB keys are both fragile and indestructible. Sometimes they will stop working for no obvious reason, other times you can stamp on them in a puddle with no effect. (I have children and thus an intuition to the breaking strain of technology)

Be also aware that anyone who has received formal training in information security knows that people who are looking to leave have sticky fingers. The evidence is that people even take things that can't realistically be any use to them.

Also, if you've done Real programming, you also know that easter eggs can be hidden in source code. A trivial example is what looks like a routine to input tickers and prices. Give it certain input and the ticker will read "This code has been stolen", even though that literal does not exist in the source code. Hiding easter eggs in compiled code is even easier. Hard to defend that in court.

Be also aware that your new employer is not on your side.
Depending on their situation, they may be horrified that you did wrong, or just that you got caught. Either way you must assume that your interests and their are no longer aligned. Bringing code into their office will create an audit trail that they will give to the court, willingly or otherwise.
You almost certainly will have to fight the legal case all by yourself, and if your new employer can make you a scapegoat to get out of trouble, you should assume they will.

All that being said, as someone who teaches bankers programming, I'd be embarassed if one of my students got caught being so dumb. As of this week I have programming interns, and so I'm in the interesting position that they will be taught useful amounts of Real programming...
 
He was obviously not very smart to get on the witness stand and try to tell his "story" and he was not very smart to use a government appointed attorney who suckered him into pleading guilty on the stand to this offense. What he really needed was a staunch defense that he was only doing his job and taking his work home with him.
Now with all his brains and his Columbia MFE degree he has to learn how to survive in American prisons with their gangs which are largely formed on racial basis.
He better get back to India as soon as possible and rebuild his career. I don't think this will affect him much in India.
 
Don't white collar criminals and other non-violent offenders go to prisons which are less.. umm gang run? i actually don't know, but somehow I have the impression that the prisons with nonviolent offenders aren't as harsh as the ones you see depicted in the television..
 
He was obviously not very smart to get on the witness stand and try to tell his "story" and he was not very smart to use a government appointed attorney who suckered him into pleading guilty on the stand to this offense. What he really needed was a staunch defense that he was only doing his job and taking his work home with him.

If that was the case, that was pretty stupid. The first thing is not to open your mouth until you've hired top-drawer legal counsel, and this holds with particular force in the US. The legal counsel could have designed a system of defence, with fall-back positions should any particular line of defence not hold up.

I don't know the inside dope on this story but I'm surprised SocGen prosecuted: Agrawal could have threatened to divulge the technical details and the two parties could have arrived at a modus vivendi. Assuming he knew the technical details.
 
He's been dumb on several levels, not least of which is failing to read QuantNet...

I have on more than one occasion connected people with lawyers, and so far not one of them has been convicted of anything. One that ignored the offer is in jail.
That's not in any way a guarantee of course.

I sincerely hope that this is of no value to anyone here.
 
Well this guy will get 3 years. Then he will do 12-18 months and be deported. He is just 27, so he should be okay once he returns to India. The background checks in India will not check criminal records in USA. He may have to change his name though to get a job in Finance.
The Russian dude's trial is starting today. It looks like the precedent has been set and he will meet the same fate as this dude. Pity though. He has three beautiful daughters and to go from a $400 K per year salary to jail and probable unemployment is just terrible for them. Probably if he is convicted he will have to leave the USA and return to Russia to find a job. I doubt the banks are going to take the risk of hiring these guys.
some update
Trial Begins Over Goldman Sachs Computer Trading Code - NYTimes.com
 
I certainly hope the Russian dude has the brains to hire his own attorney and to tell the government appointed attorney to take a hike. Any decent attorney can beat a rap like this. You just claim that the dude is doing his job and is working overtime at home for free just to keep his job and impress his manager.
The last thing you want to do is get on the stand and plead guilty to theft of trade secrets which the government appointed attorney suckered the Indian dude into doing. What a colossal moron.
 
He was obviously not very smart to get on the witness stand and try to tell his "story" and he was not very smart to use a government appointed attorney who suckered him into pleading guilty on the stand to this offense. What he really needed was a staunch defense that he was only doing his job and taking his work home with him.
Now with all his brains and his Columbia MFE degree he has to learn how to survive in American prisons with their gangs which are largely formed on racial basis.
He better get back to India as soon as possible and rebuild his career. I don't think this will affect him much in India.

Some people have probably done worse and gotten away with a slap on the wrist. He should have found himself a very good lawyer.
 
The last thing you want to do is get on the stand and plead guilty to theft of trade secrets which the government appointed attorney suckered the Indian dude into doing. What a colossal moron.
It's easy to sit here and say he should do this and that but try to put yourself in his shoes: being 27 years old, living in the City by himself with no family, getting searched by FBI agents, got arrested and put in a holding cell for the first time in his life. Then get sued by his former firm and abandoned by future one.

He probably was scared to death by all the investigation. He probably don't have enough money to hire a criminal defense attorney. Of the top of your head, do you know who is the best criminal lawyer? Can you afford him?

I'm sure you will do better when you are in his shoes.
 
Wow, I read the Forbes article. This guy got his MFE from Columbia in 2007. His 2009 bonus at Societe Generale was $130,000 and they offered him many multiples of that for his 2010 bonus.
He took $575,000 signing bonus from Tower. This for a guy with TWO YEARS experience.
Now with all those brains and all those IIT and Columbia degrees he has to spend a few years in the big house. Maybe he gets Bernie Madoff as a cellmate.
 
After reading the Reuters article, I felt this guy was harshly done. It sounds like a guy who was trying to get ahead printed out some code so he could take his work home.

But then I read this article on Forbes:

Former SocGen Trader Socked in Criminal Code Case - Bill Singer - Street Sweeper - Forbes

which alleges that he shared details of the SocGen trading system in a series of meetings in order to secure a lucrative hedge fund job.
he shared the details with FBI also.
One of the calls he received was from an undercover FBI agent, and Agrawal was toast.
http://www.businessinsider.com/sama...ed-me-aside-typed-it-into-my-computer-2010-11
 
I have had few interactions with him and just feel sorry for him :(
he shared the details with you also?;)
why do you feel sorry for him? do you feel sorry for Madoff also?
only if you have written some serious code you will know how it feels when someone copies it and uses it as if he wrote it. companies take years and spend millions of dollars to develop some money making trading systems. you can't just copy it and use it.
 
Yeah, I also feel sorry for him and especially for his parents who came here for his trial. He got set up by a government-appointed "DEFENSE" attorney who was probably colluding with the FBI and the prosecutors and the justice departent. The government appointed "DEFENSE" attorney has to maintain his relationships with the FBI and the Justice department for future work. The DEFENSE attorney delivered this poor sucker's head to them on a platter by putting him on the witness stand and then getting him to plead guilty to this offense. I mean, which "DEFENSE" attorney puts his client on the witness stand and then asks him questions which make him plead guilty. This is just a terrible miscarriage of justice.
Now, with his IIT degree and his Columbia MFE degree and his $600,000 signing bonus (AFTER TWO YEARS EXPERIENCE) from Tower, this young dude who could have been so successful and made so much money on Wall Street, he has to spend some time in American prison, where no normal human being should have to go. The inmates are like animals who are extremely violent and group together in gangs on racial basis.
They should just deport this sucker. He can easily rebuild his career in India.
 
He is going to a white collar prison, although he should definitely watch out for that CPA gang. I hear they use calculators instead of shivs.
 
Yeah, I also feel sorry for him and especially for his parents who came here for his trial. He got set up by a government-appointed "DEFENSE" attorney who was probably colluding with the FBI and the prosecutors and the justice departent. The government appointed "DEFENSE" attorney has to maintain his relationships with the FBI and the Justice department for future work. The DEFENSE attorney delivered this poor sucker's head to them on a platter by putting him on the witness stand and then getting him to plead guilty to this offense. I mean, which "DEFENSE" attorney puts his client on the witness stand and then asks him questions which make him plead guilty. This is just a terrible miscarriage of justice.
Now, with his IIT degree and his Columbia MFE degree and his $600,000 signing bonus (AFTER TWO YEARS EXPERIENCE) from Tower, this young dude who could have been so successful and made so much money on Wall Street, he has to spend some time in American prison, where no normal human being should have to go. The inmates are like animals who are extremely violent and group together in gangs on racial basis.
They should just deport this sucker. He can easily rebuild his career in India.

Yeah. Rebuilding career in India won't be a problem for him.And please
don't compare him to madoff.... sometime our whole life boils down to just one insane moment.
 
.. sometime our whole life boils down to just one insane moment.
he did not take this decision in a moment. he was sitting at home for several months talking to all hedge funds in NY and decided to join who offered him the most for the stolen code.
 
I hope the Russian dude has got access to Quantnet. If he is using a government appointed DEFENSE attorney, he should tell that attorney to take a hike IMMEDIATELY, even in the middle of the trial. Hire your own attorney. If Johnny can get OJ free, TraderJoe can get you free.
 
he did not take this decision in a moment. he was sitting at home for several months talking to all hedge funds in NY and decided to join who offered him the most for the stolen code.

Seems like he was literally asking for it. Still, the likes of Michael Milken, Ivan Boesky, and Martha Stewart have all been behind bars. Plus, three years is a holiday compared to, say, 20 years in a Soviet gulag.

I think one general lesson for Quantnet readers to take away is that they should know a halfway-decent lawyer they can phone if something -- anything -- happens (and not necessarily just at work). The USA is a bureaucratic and litigious society. Lawyers are a necessary evil.
 
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