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Excerpt from ‘Flash Boys’ about Serge Aleynikov and Goldman Sachs

335 pointsby peterbotondabout 11 years ago

35 comments

ntakasakiabout 11 years ago
Continuing the story from his Wiki page:<p>In March 2011, Aleynikov appealed the conviction, asking the Second Circuit to review the District Court&#x27;s decision denying his original motion to dismiss the indictment for failure to state a claim.[9]<p>On February 16, 2012, the United States Court of Appeals for the Second Circuit heard oral argument on his appeal and, later that same day, unanimously ordered his conviction reversed and a judgment of acquittal entered, with opinion to follow.[10] Aleynikov was released from custody the next day.<p>On April 11, 2012, Dennis Jacobs, Chief Judge of the United States Court of Appeals, published a unanimous decision in a written opinion[10] stating:<p>On appeal, Aleynikov argues, inter alia, that his conduct did not constitute an offense under either statute. He argues that: [1] the source code was not a &quot;stolen&quot; &quot;good&quot; within the meaning of the NSPA, and [2] the source code was not “related to or included in a product that is produced for or placed in interstate or foreign commerce” within the meaning of the EEA. We agree, and reverse the judgment of the district court.[9]<p>In the course of these events, Aleynikov has spent 11 months in prison. Aleynikov has divorced, lost his savings, and his career is ruined.[11]<p>The government did not seek reconsideration of the Second Circuit&#x27;s ruling, thus ending federal action against Aleynikov.[12]
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rdtscabout 11 years ago
For those that don&#x27;t know, Serge is a great Erlang and C++ programmer and he contributes to open source (had some pull requests to Erlang itself).<p>Here is his Github account:<p><a href="https://github.com/saleyn" rel="nofollow">https:&#x2F;&#x2F;github.com&#x2F;saleyn</a><p>You can find his posts on Erlang&#x27;s mailing list once a while.<p>Two of his interesting project I am following:<p><a href="https://github.com/saleyn/erlexec" rel="nofollow">https:&#x2F;&#x2F;github.com&#x2F;saleyn&#x2F;erlexec</a> -- a utility to control OS process from Erlang.<p><a href="https://github.com/saleyn/eixx/" rel="nofollow">https:&#x2F;&#x2F;github.com&#x2F;saleyn&#x2F;eixx&#x2F;</a> -- Erlang to C++ interface.
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yukichanabout 11 years ago
This sucks, but seriously never talk to the police. Don&#x27;t write anything down. Don&#x27;t say anything. Don&#x27;t sign anything. Tell them your name and otherwise just stay silent. They are never trying to help you, they&#x27;re trying to close their case.
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Mikeb85about 11 years ago
Read the GPL carefully, very carefully...<p>An organisation counts the same as an individual, and as long as code stays within the organization that doesn&#x27;t count as &#x27;distribution&#x27;, and Goldman Sachs is under no obligation to release the code. They even retain the rights to prevent the code being released.<p>It&#x27;s easy to hate on Goldman Sachs for many things, but in this case they didn&#x27;t violate the GPL, and Aleynikov did commit a crime.
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FD3SAabout 11 years ago
<i>The programmer types were different from the trader types. The trader types were far more alive to the bigger picture, to their context. They knew their worth in the marketplace down to the last penny. They understood the connection between what they did and how much money was made , and they were good at exaggerating the importance of the link. Serge wasn’t like that. He was a little-picture person, a narrow problem solver. “I think he didn’t know his own value,” says the recruiter.</i><p>This infuriates me to no end. These engineers need to be rounded up, and given a serious life lesson on the reality of markets. Knowing your product&#x2F;service&#x27;s worth is step 1 of any free market activity.<p>Engineering is the only profession where the most talented engineers occupy the lowest compensation brackets with respect to their worth. All sorts of bullshit excuses are made up for this (my favorite - they&#x27;re &quot;Specialists&quot;), but the bottom line is they are not being compensated at anywhere near what they&#x27;re worth.<p>This is why startups, and consulting firms, are so key. If the market you&#x27;re trying to enter is too big for a small operation (like Wall St.), then just consult. Those 20 superstar programmers need to meet up and start a consulting firm. Then, they sell their services to these banks and charge them whatever they want (read: a lot).<p>They then use this compensation to hire the best engineers from across the world, and keep them out of Wall St&#x27;s hands. This wouldn&#x27;t be too difficult, because Wall St would never match salaries because they are traders, and would die before they paid an engineer more than themselves.<p>To all of HN: please don&#x27;t underestimate your worth. It hurts everyone, including yourself.
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muyuuabout 11 years ago
Sounds to me like it was Aleynikov who didn&#x27;t understand the severity of the crime he committed.<p>I work in a similar environment and I&#x27;m fully aware that if I do something remotely like bringing my code from work home, holy crap I&#x27;m committing a very VERY serious crime and my employer would go after me as viciously as they could. Very especially if I were to be going somewhere else where this code would set me up to make a new competing engine.<p>Pushing stuff to SVN and mailing seem innocuous... but depending on what you are actually passing around they can be extremely serious crimes.
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zx2c4about 11 years ago
&gt; He deleted his bash history— the commands he had typed into his own Goldman computer keyboard. To access the computer, he was required to type his password . If he didn’t delete his bash history, his password would be there to see, for anyone who had access to the system.<p>Wait, what?
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mcvabout 11 years ago
Old story. Definitely sucks for him, but mailing yourself proprietary code of a very secretive and ruthless bank is not exactly the smartest thing to do.
infinotizeabout 11 years ago
Amazing how naive in some regards a very smart person can be. You don&#x27;t send yourself source code, and you definitely don&#x27;t talk to police without a lawyer, or invite them into your house.
artellectualabout 11 years ago
Seems to me here, the biggest lesson one can learn from this story is don&#x27;t work for companies like Goldman Sachs. if they don&#x27;t want to get with the times and understand how the world they don&#x27;t understand works then they deserve to be technically behind. So on top of not understanding your work as a developer instead of learning how things work, they choose to abuse the law. Worse part is the law is like a big spider web where it traps the small guys while the tigers and elephants walk right through, there is no justice here no matter how many sections you quote or how many laws you read. Best thing is to just be smart and not get involved. There are many opportunities out there for talented developers.
dfcabout 11 years ago
I don&#x27;t understand this bit about the DNI:<p><pre><code> US master spy Clapper says spies steal open source, then immediately claims ownership and classifies it, and prosecutes if the material is disclosed, like Goldman Sachs. </code></pre> What did Clapper do?
gflatemanabout 11 years ago
flash boys also talks about the FBI&#x27;s suspicion when they heard Aleynikov was using software called &#x27;subversion&#x27;, and assuming he was thus doing something &#x27;subversive&#x27;<p>that cracked me up!
bayesianhorseabout 11 years ago
Moral of the story: If you don&#x27;t want to be thrown in jail for stealing something you didn&#x27;t steal, don&#x27;t sign a confession...<p>In fact it sounds as if the defendant actually phrased most of the confession himself...
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crystalnabout 11 years ago
So, he emailed source code to himself (yes that was illegal and violated his employment contract,) deleted the bash history (there are plenty of other ways to prevent your password from showing up in history,) waived his right to a lawyer, talked endlessly with an FBI agent and was surprised (?!) that the agent was not a computer expert, then signed a confession.<p>Sorry if I fail to have much sympathy. If you play in the big leagues, you should at least have some sense of self preservation.
ithoughtabout 11 years ago
His federal conviction was overturned then they later recharged him for the same incident in state court. Also Congressman Lamar Smith, who sponsored SOPA, amended the Economic Espionage Act of 1996 with the Theft of Trade Secrets Clarification Act of 2012 specifically related to this case.<p>Sergey&#x27;s Legal Defense Fund - <a href="http://www.aleynikov.org/" rel="nofollow">http:&#x2F;&#x2F;www.aleynikov.org&#x2F;</a>
hynahmwxsbybabout 11 years ago
I wonder how much this cost Goldman from a talent perspective.
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Natsuabout 11 years ago
&gt; On the night of his arrest, Serge waived his right to call a lawyer. [...] Then he sat down and politely tried to clear up the confusion of this FBI agent who had arrested him without an arrest warrant.<p>These are things no sane person should do, <i>especially</i> if they&#x27;re innocent.
fredgrottabout 11 years ago
the problem I have with the article is that FOSS&#x2F;OSS used internally and modified for that use and not distributed would mean under normal copyright and work rules that yes GS did own the changes to OSS&#x2F;FOSS used internally but never distributed.
yoamroabout 11 years ago
Trying to sympathize with the guy, but signing a confession?....just doesn&#x27;t make sense
auggieroseabout 11 years ago
There is a simple solution to this. When you publish open source software, make sure that in your license it says that Goldman Sachs is not allowed to use this code for any purpose whatsoever.
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doktrinabout 11 years ago
What repeatedly stands out every time I read of this account is the relative ineptitude of the federal agents handling the investigation.<p>There appears to be every indication that agent McSwain did everything short of taking explicit marching orders from GS.<p>The FBI either lacked the will or ability to understand the crimes they were tasked with investigating. I find that disturbing.
james-bronzeabout 11 years ago
(I&#x27;m sorry if I do this incorrectly; first time posting plus I&#x27;m on an app)<p>&quot;Serge tried to explain why he always erased his bash history, but McSwain had no interest in his story. “The way he did it seemed nefarious,” the FBI agent would later testify.&quot; Whom is the FBI agent referring to, McSwain or Serge?
eriktrautmanabout 11 years ago
I don&#x27;t normally bring this up but in this case the site formatting is essentially unreadable for someone with poor eyesight who needs to expand the text and make the container narrow to avoid constant left&#x2F;right scrolling.
ececconiabout 11 years ago
The original link didn&#x27;t mention this was an excerpt from Flash Boys so I had no clues Michael Lewis wrote it. I&#x27;ve never read any of his books. Now I want to because he actually writes pretty well.
PythonicAlphaabout 11 years ago
That is the problem with invention vs. &quot;intellectual property&quot;. Inventions belong to the inventor -- property belongs to the owner.
kylemaxwellabout 11 years ago
I thought the policy here was to use the actual title of the article, not to edit it. Why did the moderators change it?
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ig1about 11 years ago
Flagged because article completely misunderstands how GPL works. GPL doesn&#x27;t apply if you modify source-code to use internally, it only applies if you distribute it externally to third party users.<p>[GPL not mentioned in article; my recollection from the original court documents is that the code was largely LGPL and GPL code]
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kayooneabout 11 years ago
&quot;Aleynikov was employed for two years, from May 2007 to June 2009, at Goldman at a salary of $400,000.[1] He left Goldman to join Teza Technologies, a competing trading firm which offered to triple his pay.[5]&quot;<p>jeez, those banks pay a pretty penny.
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zenbowmanabout 11 years ago
Goldman is a nest of parasites and vultures, do we really expect anything more from them?
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caycepabout 11 years ago
probably OT...but Cryptome posting an excerpt from a Michael Lewis book? that&#x27;s a bit out of character...
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senthilnayagamabout 11 years ago
so effectively Goldman Sacks killed the potential competing high performance trading platform
leccineabout 11 years ago
Lesson learned, don&#x27;t ever work for Wall Street.
notastartupabout 11 years ago
This is batshit insane. Wall Street is fucking insane. I hope Serge wins a huge lawsuit.
zorboabout 11 years ago
Okay, so.<p>* misleading title. Goldman Sachs stole nothing.<p>* This guy steals code from Goldman Sachs.<p>* Covers his tracks. There is almost no reason why your password ever ends up in your bash history. If it does, you edit out <i>only</i> the password. Or you put a space before the command you run. At any rate, this guy <i>should</i> have known how to prevent his password from getting in the shell history and had <i>no</i> reason to delete his history.<p>* The guy talks to the cops<p>* Waves his rights to a lawyer<p>* Signs a confession<p>* Lets cops into his house without a search warrant.<p>* Doesn&#x27;t testify at this trial.<p>This guy fully deserved what was coming to him. Goldman Sachs did nothing wrong here.
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fenollpabout 11 years ago
Reminds me of <a href="http://en.wikipedia.org/wiki/Sergey_Aleynikov" rel="nofollow">http:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;Sergey_Aleynikov</a>
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