Former Goldman Programmer Still on the Hook for Code Theft, Perhaps Is It Time to Talk About the Model He Was Writing Code For T
Posted Apr 30 2013 8:40pm
There’s been a lot of talk and especially here at this blog about the “models” that are used for software. The Quants are at the top of the ladder here with having the talent to create the models and then the programmers follow up with creating the software and code that is used to execute the mathematical models. I have not seen or heard much about what model he was programming for or exactly what area of their IT infrastructure he was in. There’s a good video that explains this with actual quants who model discuss how this works and another player who is programmer that want to be a quant. If you don’t understand this process it’s a great video and the only one I have found to where the layman can understand some of how the big banks and companies use math formulas to move money, as that’s what they do. The Quants video will fill you in and again it would be interesting to see what area he worked in with programming at Goldman. With Sergey Aleynikov you are dealing with a very intelligent person here and you really need a jury of “technologists’ to fairly hear the case in my opinion.
He did have his one case overturned by one judge who apparently has some technical understanding and knowledge. Again without knowing exactly what type of code was taken, and it could have been a lump of commonly used repetitive code that many companies use over and over as a component of the entire software program or web based website running the algorithms. This is why I ask that we perhaps inquire about what “model” was being used. You could throw a bunch of code in front of a non tech jury and they wouldn’t know the difference here.
Modeling and coding is just beginning to come into the spot light with questions being asked and it’s a good thing as models and code run on servers 24/7 and make life impacting decisions about all of us. I for one would really like to know what kind of model he was coding for and I’m sure I’m not alone as I’m like everyone else who wants the truth and this “truth” is a lot more technical than most can understand. Actually in the modeling end of the business, the quants are getting a little nervous I guess for lack of a better word to describe as the functions they provide with models has changed so much over the last few years from efficiencies to models that make money. In short they want their jobs and don’t want to be in a position to where they have someone higher above advising use of a model that may not work or might be erroneous or just flat out lie. So again this could be a good time to open the full book to see the entire story.
Here’s a couple sample lines below of what I am talking about with a code of ethics so again in trying to figure out exactly what kind of code and the real value here it would be helpful to see what type of model he was perhaps programming for?
(b) A data scientist shall rate the quality of data and disclose such rating to client to enable client to make informed decisions. The data scientist understands that bad or uncertain data quality may compromise data science professional practice and may communicate a false reality or promote an illusion of understanding. The data scientist shall take reasonable measures to protect the client from relying and making decisions based on bad or uncertain data quality.
(d) If a data scientist reasonably believes a client is misusing data science to communicate a false reality or promote an illusion of understanding, the data scientist shall take reasonable remedial measures, including disclosure to the client, and including, if necessary, disclosure to the proper authorities. The data scientist shall take reasonable measures to persuade the client to use data science appropriately.”
So what do you think? Are going to go the whole gambit here and dissect a Goldman model? Sure some are probably laughing and some might think this article belongs in the trash too, but at any rate, if the state is going to pursue this and “really” prove the value of the data he took since the feds have already over turned this, let’s dig up the models and see exactly what kind of Goldman Model he was programming for and see what the “real” value of the code is or was. Inquiring minds would like to know. More good videos on this topic are in the footer of this blog and most are where the layman can understand most of it or take a visit over to the Algo Duping page for a few more videos that help explain what’s going on here and let’s get a jury of programmers and quants to officially put this to bed and get the real truth! BD
(Reuters) - A former Goldman Sachs Group Inc computer programmer failed to win the dismissal of charges by Manhattan's district attorney of stealing secret trading code, despite having earlier had his federal conviction over the same activity thrown out.
In a decision made public on Tuesday, New York State Supreme Court Justice Ronald Zweibel said the former programmer, Sergey Aleynikov, did not show that the charges brought by Manhattan District Attorney Cyrus Vance Jr amounted to double jeopardy, or were part of a "vindictive prosecution" justifying dismissal.
"We are in the process of reviewing the opinion, and are confident that Mr. Aleynikov will again be vindicated," Aleynikov's lawyer Kevin Marino said in a phone interview about the decision, which is dated April 5.
"Even assuming, as defendant does, that the timing of this indictment, coupled with the defendant's successful appeal of his federal court conviction, raises an inference that the prosecution may have been motivated for vindictive reasons, these factors along do not create a presumption of vindictiveness," Zweibel wrote.