Trials & Litigation

Split jury verdict for former Goldman Sachs programmer accused in code-theft case

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A former programmer for Goldman Sachs didn’t dispute that he took computer trading code with him when he exited for a new job.

However, while Sergey Aleynikov violated the bank’s confidentiality policy by doing so, he committed no crime, his lawyer, Kevin Marino told a New York state-court jury in Manhattan.

On Friday, after two jurors were dismissed earlier in the week following an unusual food-poisoning dispute and both sides agreed to continue to verdict with only 10 jurors, a split decision was reached. The jury found Aleynikov guilty of illegal use of secret scientific material and not guilty of illegal duplication of computer-related material, according to Bloomberg, the DealBook page of the New York Times (reg. req.) and the Wall Street Journal (sub. req.).

The jury deadlocked on a third count, which also involved alleged illegal use of secret scientific material.

Friday’s conviction on the one count followed a lengthy criminal-justice saga for Aleynikov in the controversial case.

Arrested in mid-2009, he rejected a plea bargain that would not have required him to serve any prison time. He was federally charged and convicted under a commercial espionage statute. Then, after spending a year behind bars, his conviction was reversed by a federal appeals court. The state-court prosecution followed. Now 45, he lost his job and his marriage as the case unfolded.

The articles don’t include any comment from the parties, but an appeal of Aleynikov’s latest conviction appears likely: Marino argued at trial that essential elements of the claimed crimes had not been proven by the prosecution, including a “tangible” reproduction of the files required to establish unlawful use of secret scientific material.

Marino is expected to argue for leniency at sentencing, and to emphasize the time Aleynikov already spent in prison following the now-reversed federal conviction.

Related coverage:

ABAJournal.com: “2nd Circuit Axes Espionage Conviction of Goldman Sachs Programmer Who Took Source Code to New Job”

ABAJournal.com: “Still battling code-theft case, former Goldman Sachs programmer sues bank for legal fees”

DealBook (New York Times, reg. req.): “Goldman Sachs Programmer’s Trial Resumes After Jury Disruption”

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