Goldman Sachs – Former Programmer Gets Indicted for Stolen Code – AKA Intellectual Property
Posted Feb 11 2010 9:02pm
Being I used to write codethis story interests me and it’s happening all over the world with the “smart” people running algorithmic formulas to make money and take from those who do not. I just did a post about this topic today with United Healthcare and their algorithmic formulas. This is one of the reason I plaster that word along with a link to the definition in the middle of this blog with hopes of bringing about an awareness and bring some out of “tech denial” so they understand what processes are working either for or against them. The folks at the hospitalpeer groupsetc. were entirely befuddled. When you create algorithmic formulas with code that is complex and intricatethe average person has no clue and health insurance has been doing this for a long time. Health insurance carriers and Wall Street are two of the heaviest investors in technologyto have the best designed code and hardware – High Frequency Healthcare.
Computer code is so modular today and thus there are a number of modules that go into making a program work. In the past with the size of the files reported I find it hard to believe that there was enough to simulate their code machines at Goldmanbut there could have been enough to build from for a new program. What do you think Dot Net is with Microsoft? The code has to go somewhere and the basics are there and additional code is written on top to develop from. This way we are not building everything from scratch as it would never gone done. I used to use other people’s modules and incorporate them into the entire scheme after some modifications. AgainI am basing this from what I have read and I personally think this is going to be one touch case. First of all you need a jury that knows what “code” is and how it worksotherwise half of the entire court case is way over their heads and they won’t understand.
What did AIG have to say back in 1987?
Goldman has the latest version of the Inslaw/PTECH/PROMS software and front run the market including their own clientsthat's how they get their money through software with accelerated business intelligence algorithm and aggregation capabilities.
At any rate this will be an interesting show to see how it all plays out and one thing that came out of this was the admittance of Goldman on of how important and how much money those algorithms make for them. Health Insurers are looking for new algorithms all the time. When you have health insurers that are tied in close to Wall Streetthere might be some algorithmic aid in here somewhere too.
Some of the links above go back to a year or longerso I have been watching this for a while and again it is my intention to somehow drag folks out of tech denial and explain that this is how they make moneyit’s all about the algorithms being used against the ignorantyou and I for that matter. This is also a big part why the White House has such a strong emphasis on getting the government up to date. Our last administration was heavy in “tech denial” and there was no sense of urgencybut big business saw it differently and went to work on their algorithms as they knew the return would be goodand look at where they are today. They even preach this to others as solutionsbut carefully not to wake up the tech denial world as that is what affords their freedom. They got spoiled with 8 years of this type of operation and now it’s changing.
The man being prosecuted is smart by all meanssmarter probably than everyone else in on the case from both sides so again this will be interesting to see if an intelligent trial is conducted or if it ends up being the same old horse and buggy stuff with all the drama kings and queens. BD
Federal prosecutors said Thursday that Sergey Aleynikova former computer programmer at Goldman Sachshad been indicted on charges that he stole proprietary software that the firm uses to make rapid-fire trades in the financial markets.
The indictment accuses Mr. Aleynikov of theft of trade secretstransporting stolen property in foreign commerce and unauthorized computer access. If convicted of the chargesMr. Aleynikov would face up to 25 years in prisonthe United States Attorney’s Office in Manhattan said.