Three charged with stealing source code, data from trading firm

By Joseph Ax

NEW YORK | Mon Aug 26, 2013 12:37pm EDT

NEW YORK (Reuters) - Two men have been charged by New York prosecutors with stealing secret computer code from a high-frequency trading firm in an effort to start their own business.

Jason Vuu, a former trader at Flow Traders LLC in Manhattan, was charged with emailing himself trading strategies, valuation algorithms and proprietary code from the firm and sharing the code with another man, Simon Lu, according to criminal complaints filed by the office of Manhattan District Attorney Cyrus Vance.

Another former trader at Flow Traders, Glen Cressman, was charged with copying files containing trading strategies and valuation algorithms without permission, the complaints said.

Paul Shechtman, a lawyer for Lu, and Jeremy Saland, a lawyer for Vuu, did not immediately respond to requests for comment on Monday.

Charles Ross, who represents Cressman, said his client was innocent.

"He was a fine employee, and when everything about the case is aired, it will be clear he did nothing wrong," Ross said.

The arrests came a year after Vance's office charged former Goldman Sachs Group Inc. programmer Sergey Aleynikov with stealing secret trading code. Aleynikov was convicted in federal court for the same actions, but his conviction was thrown out in February 2012 by an appeals court, which said federal espionage laws did not cover his alleged theft.

Vance then charged Aleynikov under New York state law. Earlier this year, a judge denied Aleynikov's attempt to have the state charges dismissed on double jeopardy grounds. Aleynikov, who pleaded not guilty, is free on bail.

Both Vance and Manhattan U.S. Attorney Preet Bharara, whose office brought the initial case against Aleynikov, have made combating computer crime and corporate espionage a top priority.

Lu, Vuu and Cressman all face multiple counts of unlawful duplication of computer-related material and unauthorized use of secret scientific material, the same charges Aleynikov is facing. The charges carry up to four years in prison.

Vuu sent copies of files from his work email account to his personal email address 10 times from August 2011 to August 2012, the complaint alleged. He also shared source code with Lu via the file-hosting service Dropbox after Lu suggested the code could help them start their own firm, according to the complaint.

Cressman's personal email account received copied files containing trading strategies and valuation algorithms twice in December 2012, according to the complaint.

The charges were first reported by The Wall Street Journal.

(Reporting by Joseph Ax; Editing by Noeleen Walder and Dan Grebler)

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Three charged with stealing source code, data from trading firm

By Joseph Ax

NEW YORK | Mon Aug 26, 2013 12:37pm EDT

NEW YORK (Reuters) - Two men have been charged by New York prosecutors with stealing secret computer code from a high-frequency trading firm in an effort to start their own business.

Jason Vuu, a former trader at Flow Traders LLC in Manhattan, was charged with emailing himself trading strategies, valuation algorithms and proprietary code from the firm and sharing the code with another man, Simon Lu, according to criminal complaints filed by the office of Manhattan District Attorney Cyrus Vance.

Another former trader at Flow Traders, Glen Cressman, was charged with copying files containing trading strategies and valuation algorithms without permission, the complaints said.

Paul Shechtman, a lawyer for Lu, and Jeremy Saland, a lawyer for Vuu, did not immediately respond to requests for comment on Monday.

Charles Ross, who represents Cressman, said his client was innocent.

"He was a fine employee, and when everything about the case is aired, it will be clear he did nothing wrong," Ross said.

The arrests came a year after Vance's office charged former Goldman Sachs Group Inc. programmer Sergey Aleynikov with stealing secret trading code. Aleynikov was convicted in federal court for the same actions, but his conviction was thrown out in February 2012 by an appeals court, which said federal espionage laws did not cover his alleged theft.

Vance then charged Aleynikov under New York state law. Earlier this year, a judge denied Aleynikov's attempt to have the state charges dismissed on double jeopardy grounds. Aleynikov, who pleaded not guilty, is free on bail.

Both Vance and Manhattan U.S. Attorney Preet Bharara, whose office brought the initial case against Aleynikov, have made combating computer crime and corporate espionage a top priority.

Lu, Vuu and Cressman all face multiple counts of unlawful duplication of computer-related material and unauthorized use of secret scientific material, the same charges Aleynikov is facing. The charges carry up to four years in prison.

Vuu sent copies of files from his work email account to his personal email address 10 times from August 2011 to August 2012, the complaint alleged. He also shared source code with Lu via the file-hosting service Dropbox after Lu suggested the code could help them start their own firm, according to the complaint.

Cressman's personal email account received copied files containing trading strategies and valuation algorithms twice in December 2012, according to the complaint.

The charges were first reported by The Wall Street Journal.

(Reporting by Joseph Ax; Editing by Noeleen Walder and Dan Grebler)

View the original article here

This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

Three charged with stealing source code, data from trading firm

By Joseph Ax

NEW YORK | Mon Aug 26, 2013 12:37pm EDT

NEW YORK (Reuters) - Two men have been charged by New York prosecutors with stealing secret computer code from a high-frequency trading firm in an effort to start their own business.

Jason Vuu, a former trader at Flow Traders LLC in Manhattan, was charged with emailing himself trading strategies, valuation algorithms and proprietary code from the firm and sharing the code with another man, Simon Lu, according to criminal complaints filed by the office of Manhattan District Attorney Cyrus Vance.

Another former trader at Flow Traders, Glen Cressman, was charged with copying files containing trading strategies and valuation algorithms without permission, the complaints said.

Paul Shechtman, a lawyer for Lu, and Jeremy Saland, a lawyer for Vuu, did not immediately respond to requests for comment on Monday.

Charles Ross, who represents Cressman, said his client was innocent.

"He was a fine employee, and when everything about the case is aired, it will be clear he did nothing wrong," Ross said.

The arrests came a year after Vance's office charged former Goldman Sachs Group Inc. programmer Sergey Aleynikov with stealing secret trading code. Aleynikov was convicted in federal court for the same actions, but his conviction was thrown out in February 2012 by an appeals court, which said federal espionage laws did not cover his alleged theft.

Vance then charged Aleynikov under New York state law. Earlier this year, a judge denied Aleynikov's attempt to have the state charges dismissed on double jeopardy grounds. Aleynikov, who pleaded not guilty, is free on bail.

Both Vance and Manhattan U.S. Attorney Preet Bharara, whose office brought the initial case against Aleynikov, have made combating computer crime and corporate espionage a top priority.

Lu, Vuu and Cressman all face multiple counts of unlawful duplication of computer-related material and unauthorized use of secret scientific material, the same charges Aleynikov is facing. The charges carry up to four years in prison.

Vuu sent copies of files from his work email account to his personal email address 10 times from August 2011 to August 2012, the complaint alleged. He also shared source code with Lu via the file-hosting service Dropbox after Lu suggested the code could help them start their own firm, according to the complaint.

Cressman's personal email account received copied files containing trading strategies and valuation algorithms twice in December 2012, according to the complaint.

The charges were first reported by The Wall Street Journal.

(Reporting by Joseph Ax; Editing by Noeleen Walder and Dan Grebler)

View the original article here

This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

Three charged with stealing source code, data from trading firm

By Joseph Ax

NEW YORK | Mon Aug 26, 2013 12:37pm EDT

NEW YORK (Reuters) - Two men have been charged by New York prosecutors with stealing secret computer code from a high-frequency trading firm in an effort to start their own business.

Jason Vuu, a former trader at Flow Traders LLC in Manhattan, was charged with emailing himself trading strategies, valuation algorithms and proprietary code from the firm and sharing the code with another man, Simon Lu, according to criminal complaints filed by the office of Manhattan District Attorney Cyrus Vance.

Another former trader at Flow Traders, Glen Cressman, was charged with copying files containing trading strategies and valuation algorithms without permission, the complaints said.

Paul Shechtman, a lawyer for Lu, and Jeremy Saland, a lawyer for Vuu, did not immediately respond to requests for comment on Monday.

Charles Ross, who represents Cressman, said his client was innocent.

"He was a fine employee, and when everything about the case is aired, it will be clear he did nothing wrong," Ross said.

The arrests came a year after Vance's office charged former Goldman Sachs Group Inc. programmer Sergey Aleynikov with stealing secret trading code. Aleynikov was convicted in federal court for the same actions, but his conviction was thrown out in February 2012 by an appeals court, which said federal espionage laws did not cover his alleged theft.

Vance then charged Aleynikov under New York state law. Earlier this year, a judge denied Aleynikov's attempt to have the state charges dismissed on double jeopardy grounds. Aleynikov, who pleaded not guilty, is free on bail.

Both Vance and Manhattan U.S. Attorney Preet Bharara, whose office brought the initial case against Aleynikov, have made combating computer crime and corporate espionage a top priority.

Lu, Vuu and Cressman all face multiple counts of unlawful duplication of computer-related material and unauthorized use of secret scientific material, the same charges Aleynikov is facing. The charges carry up to four years in prison.

Vuu sent copies of files from his work email account to his personal email address 10 times from August 2011 to August 2012, the complaint alleged. He also shared source code with Lu via the file-hosting service Dropbox after Lu suggested the code could help them start their own firm, according to the complaint.

Cressman's personal email account received copied files containing trading strategies and valuation algorithms twice in December 2012, according to the complaint.

The charges were first reported by The Wall Street Journal.

(Reporting by Joseph Ax; Editing by Noeleen Walder and Dan Grebler)

View the original article here

This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

Former Grant Thornton partner pleads guilty to stealing $4 million

By Nate Raymond

NEW YORK | Wed Aug 21, 2013 1:46pm EDT

NEW YORK (Reuters) - A former partner at Grant Thornton pleaded guilty on Wednesday to stealing nearly $4 million in client payments to the global accounting firm.

Craig Haber, who prosecutors said diverted money to his own bank accounts between 2004 and 2012, pleaded guilty to a charge of mail fraud in federal court in New York.

"I knew my conduct was wrong," Haber said at a court hearing. "I apologize sincerely to the firm for my actions."

Haber, 59, had been a partner at Grant Thornton from 1993 to 2012 in the firm's New York offices.

As part of his plea, he has agreed to not appeal any order requiring up to $4.34 million in restitution. He also agreed to forfeit $3.97 million, as well as all rights to his downtown Manhattan apartment and $1.8 million in a brokerage account.

Haber was arrested in February in connection with the theft, in which Haber stole $3.97 million in payments intended for Grant Thornton, a court document said.

Grant Thornton is the sixth-largest accounting firm globally with $4.2 billion in revenues in 2012, according to International Accounting Bulletin.

The firm was not named in court documents, but a spokesman for Grant Thornton previously confirmed its role and said it cooperated with the investigation. Grant Thornton terminated Haber in July, charging documents said.

Tim Blair, a spokesman for the firm, said Wednesday the firm was "pleased that the authorities have resolved this matter swiftly."

At a hearing on Wednesday, Haber admitted to telling clients to mail checks directly to his office instead of through the normal processing channel. He then deposited the checks into a bank account he controlled, Haber said.

Charging documents said Haber then used the money for personal expenses, including his New York apartment's mortgage, according to charging documents.

Sentencing before U.S. District Judge Kevin Castel is set for December 13.

Haber faces a maximum 20 years in prison. Under a plea agreement detailed in court, prosecutors have stipulated to a sentencing guideline of 51 to 61 months in prison and a fine of $10,000 to $100,000.

The case is U.S. v. Haber, U.S. District Court, Southern District of New York, 13-cr-434.

(Additional reporting by Dena Aubin; editing by Andrew Hay)

View the original article here

This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

Former Grant Thornton partner pleads guilty to stealing $4 million

By Nate Raymond

NEW YORK | Wed Aug 21, 2013 1:46pm EDT

NEW YORK (Reuters) - A former partner at Grant Thornton pleaded guilty on Wednesday to stealing nearly $4 million in client payments to the global accounting firm.

Craig Haber, who prosecutors said diverted money to his own bank accounts between 2004 and 2012, pleaded guilty to a charge of mail fraud in federal court in New York.

"I knew my conduct was wrong," Haber said at a court hearing. "I apologize sincerely to the firm for my actions."

Haber, 59, had been a partner at Grant Thornton from 1993 to 2012 in the firm's New York offices.

As part of his plea, he has agreed to not appeal any order requiring up to $4.34 million in restitution. He also agreed to forfeit $3.97 million, as well as all rights to his downtown Manhattan apartment and $1.8 million in a brokerage account.

Haber was arrested in February in connection with the theft, in which Haber stole $3.97 million in payments intended for Grant Thornton, a court document said.

Grant Thornton is the sixth-largest accounting firm globally with $4.2 billion in revenues in 2012, according to International Accounting Bulletin.

The firm was not named in court documents, but a spokesman for Grant Thornton previously confirmed its role and said it cooperated with the investigation. Grant Thornton terminated Haber in July, charging documents said.

Tim Blair, a spokesman for the firm, said Wednesday the firm was "pleased that the authorities have resolved this matter swiftly."

At a hearing on Wednesday, Haber admitted to telling clients to mail checks directly to his office instead of through the normal processing channel. He then deposited the checks into a bank account he controlled, Haber said.

Charging documents said Haber then used the money for personal expenses, including his New York apartment's mortgage, according to charging documents.

Sentencing before U.S. District Judge Kevin Castel is set for December 13.

Haber faces a maximum 20 years in prison. Under a plea agreement detailed in court, prosecutors have stipulated to a sentencing guideline of 51 to 61 months in prison and a fine of $10,000 to $100,000.

The case is U.S. v. Haber, U.S. District Court, Southern District of New York, 13-cr-434.

(Additional reporting by Dena Aubin; editing by Andrew Hay)

View the original article here

This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

Former Grant Thornton partner pleads guilty to stealing $4 million

By Nate Raymond

NEW YORK | Wed Aug 21, 2013 1:46pm EDT

NEW YORK (Reuters) - A former partner at Grant Thornton pleaded guilty on Wednesday to stealing nearly $4 million in client payments to the global accounting firm.

Craig Haber, who prosecutors said diverted money to his own bank accounts between 2004 and 2012, pleaded guilty to a charge of mail fraud in federal court in New York.

"I knew my conduct was wrong," Haber said at a court hearing. "I apologize sincerely to the firm for my actions."

Haber, 59, had been a partner at Grant Thornton from 1993 to 2012 in the firm's New York offices.

As part of his plea, he has agreed to not appeal any order requiring up to $4.34 million in restitution. He also agreed to forfeit $3.97 million, as well as all rights to his downtown Manhattan apartment and $1.8 million in a brokerage account.

Haber was arrested in February in connection with the theft, in which Haber stole $3.97 million in payments intended for Grant Thornton, a court document said.

Grant Thornton is the sixth-largest accounting firm globally with $4.2 billion in revenues in 2012, according to International Accounting Bulletin.

The firm was not named in court documents, but a spokesman for Grant Thornton previously confirmed its role and said it cooperated with the investigation. Grant Thornton terminated Haber in July, charging documents said.

Tim Blair, a spokesman for the firm, said Wednesday the firm was "pleased that the authorities have resolved this matter swiftly."

At a hearing on Wednesday, Haber admitted to telling clients to mail checks directly to his office instead of through the normal processing channel. He then deposited the checks into a bank account he controlled, Haber said.

Charging documents said Haber then used the money for personal expenses, including his New York apartment's mortgage, according to charging documents.

Sentencing before U.S. District Judge Kevin Castel is set for December 13.

Haber faces a maximum 20 years in prison. Under a plea agreement detailed in court, prosecutors have stipulated to a sentencing guideline of 51 to 61 months in prison and a fine of $10,000 to $100,000.

The case is U.S. v. Haber, U.S. District Court, Southern District of New York, 13-cr-434.

(Additional reporting by Dena Aubin; editing by Andrew Hay)

View the original article here

This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

Former Grant Thornton partner pleads guilty to stealing $4 million

By Nate Raymond

NEW YORK | Wed Aug 21, 2013 1:46pm EDT

NEW YORK (Reuters) - A former partner at Grant Thornton pleaded guilty on Wednesday to stealing nearly $4 million in client payments to the global accounting firm.

Craig Haber, who prosecutors said diverted money to his own bank accounts between 2004 and 2012, pleaded guilty to a charge of mail fraud in federal court in New York.

"I knew my conduct was wrong," Haber said at a court hearing. "I apologize sincerely to the firm for my actions."

Haber, 59, had been a partner at Grant Thornton from 1993 to 2012 in the firm's New York offices.

As part of his plea, he has agreed to not appeal any order requiring up to $4.34 million in restitution. He also agreed to forfeit $3.97 million, as well as all rights to his downtown Manhattan apartment and $1.8 million in a brokerage account.

Haber was arrested in February in connection with the theft, in which Haber stole $3.97 million in payments intended for Grant Thornton, a court document said.

Grant Thornton is the sixth-largest accounting firm globally with $4.2 billion in revenues in 2012, according to International Accounting Bulletin.

The firm was not named in court documents, but a spokesman for Grant Thornton previously confirmed its role and said it cooperated with the investigation. Grant Thornton terminated Haber in July, charging documents said.

Tim Blair, a spokesman for the firm, said Wednesday the firm was "pleased that the authorities have resolved this matter swiftly."

At a hearing on Wednesday, Haber admitted to telling clients to mail checks directly to his office instead of through the normal processing channel. He then deposited the checks into a bank account he controlled, Haber said.

Charging documents said Haber then used the money for personal expenses, including his New York apartment's mortgage, according to charging documents.

Sentencing before U.S. District Judge Kevin Castel is set for December 13.

Haber faces a maximum 20 years in prison. Under a plea agreement detailed in court, prosecutors have stipulated to a sentencing guideline of 51 to 61 months in prison and a fine of $10,000 to $100,000.

The case is U.S. v. Haber, U.S. District Court, Southern District of New York, 13-cr-434.

(Additional reporting by Dena Aubin; editing by Andrew Hay)

View the original article here

This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.