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Sergey Aleynikov Suffers The Full Wrath Of A Vindictive US Judicial System

Tyler Durden's picture




 

'Commingle' hundreds of millions in client funds which are subsequently stolen rehypothecated as collateral by JPMorgan while your firm goes bankrupt as a result of your idiotic prop trading decisions, and what happens? Your toughest choice is whether to vacation in Fiji or St Barths. That said, being former CEO of the world's biggest TBTF hedge fund also known as Goldman, a former governor and senator, and most importantly bundler for the president of the "transparent" administration certainly helps. On the other hand, be a lowly algo trader and quant programmer working at the aforementioned hedge fund, and having dared to "steal" secret trading client code that can "manipulate markets" and what - you get the full wrath and anger of the FBI, the Federal Court System, and now the Supreme Court.

The story of former Goldman programmer Sergey Aleynikov is well known to frequent readers: he was one of the first algo traders to bring attention to the arcane field in the summer of 2009, when aside from a few 'fringe blogs', nobody had even heard of algorithmic trading or the HFT scourge that less than a year later would result in the Flash Crash (and countless mini and maxi flash crashes since). What was remarkable about Sergey's case, unlike that of say... Jon Corzine, is how quickly the law proceeded to throw the book at him and to see him wind up in jail.

How else: after all he dared to "steal" code (a practice engaged by every single algo and quant programmer when they switch jobs by the way, if perhaps a little less obviously) from Goldman Sachs itself. For that alone he must fry.

And sure enough, he will.

Because the last time we read about Sergey in February of 2012, a federal appeals court in new York overturned his sentence of corporate espionage that had been handed to him in December 2010 by a federal jury, on the grounds that federal espionage laws did not cover Aleynikov's alleged illegal activity.

But then last August, NY's new State Attorney General, Cyrus Vance Jr, still humiliated from the whole DSK affair, resurrected the case acaginst the Russian and charged Aleynikov with two felonies under New York state law, unlawful use of secret scientific material and unlawful duplication of computer related material.

Sure enough, Sergey's lawyers appealed again, only this time no such luck, even though the prior appeal was granted on virtually the same grounds.

Reuters reports:

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.

 

Zweibel also rejected the argument that Aleynikov has been "punished enough," having already spent 11 months in prison during the federal proceedings and lost his home and savings, and that ending the case served the interest of justice.

 

Vance and U.S. Attorney Preet Bharara in Manhattan, who had earlier prosecuted Aleynikov, have made cracking down on computer crime and corporate espionage a top priority.

 

Zweibel said Aleynikov was not deprived of his right under the 5th Amendment of the U.S. Constitution not to be tried twice for the same offense.

 

He said this was because the federal and state charges were different, and because the federal case was dismissed because the indictment, rather than the evidence, was inadequate.

 

The judge also said there was no reason to presume that Vance had an improper motive in bringing his case.

 

"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.

No, obviously Goldman's lackeys in the judicial system are not at all vindictive. After all why not just destroy the man who already lost his home and all his savings fighting the squid for the past four years for doing something that every other banker, trader and programmer does on a daily basis when they "back up" their work computer on a flash drive. Might as well let him fry: what's the downside at this point?

Well, fry is a little strong: "Aleynikov could face up to four years in prison if convicted."

What can one say after hearing of such valiant acts of justice to punish those who are truly responsible for the absolute economic collapse and the unprecedented crony capitalism and daylight robbery from the middle classes facilitated by every country's central monetary authority?

Why, "Free Corzine" of course! As if this country did not have enough innocently jailed people...

In the meantime, ladies and gentlemen, behold the face of a pure, unadulterated criminal- the mastermind behind the vaporization of MF Global's client accounts and the person solely responsible for making the US financial Ponzi scheme into a superglued house of cards to boot.

 

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Tue, 04/30/2013 - 20:20 | 3516034 Atomizer
Atomizer's picture

Gang Of Four aka (G4) hasn’t got back to the latest public servant Anthrax threats. Meanwhile, Janet is cracking down on her Hotel sexual discontinuity sources..

http://www.dhs.gov/news-releases/press-releases

 

If you see something, say something.. Right Janet?

 

Tue, 04/30/2013 - 20:28 | 3516062 ACP
ACP's picture

Sorry Serge, not a member of the club!

Tue, 04/30/2013 - 20:36 | 3516086 DeadFred
DeadFred's picture

Darn lucky he hasn't suicided himself with two bullets to the back of the head, but there is still time.

Tue, 04/30/2013 - 20:51 | 3516136 Zer0head
Zer0head's picture

posted earlier

if you did not appreciate just how twisted things have become in America

 

----

Russia Returns Baby to American Parents

"court has returned a baby boy who was seized by authorities"

http://www.themoscowtimes.com/news/article/us-returns-baby-to-russian-pa...

Tue, 04/30/2013 - 21:09 | 3516184 James_Cole
James_Cole's picture

What he actually did the court case itself are not QUITE how Tyler paints them...

Tue, 04/30/2013 - 21:34 | 3516237 ACP
ACP's picture

The point of this article is partly to point out the inequity of the current US justice system. I'm sure this wouldn't be as big an issue if members of "the club" got the same treatment as "non-members" like Serge.

Personally, I believe if you steal something valuable, you should pay the price, for which 4 years seems fair......IN A PERFECT WORLD.

Any sentence longer than ZERO under CURRENT circumstances is bullshit, as far as I'm concerned.

Tue, 04/30/2013 - 21:44 | 3516281 Sylvia Plath
Sylvia Plath's picture

Corzined.......................... Bitchz!

 

 

 

 

........ don't let the squid hit you on the way out :)                Thank you come again!

Tue, 04/30/2013 - 23:58 | 3516701 Au_Ag_CuPbCu
Au_Ag_CuPbCu's picture

MF'd.......................... Bitchz!

Wed, 05/01/2013 - 09:25 | 3517420 marathonman
marathonman's picture

Corzine is now an event.  A lot of Cypriots are now saying those SOB's Corzined my money!  Of course it goes without saying that Corzine should be hanged from a lamp post on Wall St. as an example.  AG Eric Holder is a complete douchebag and deserving of impeachment and jail time himself.  But a different kind of mafia runs this racket and for them Corzine is still useful.

Tue, 04/30/2013 - 22:30 | 3516411 NoDebt
NoDebt's picture

Look, he did something he shouldn't have.  He's gonna pay the price.  And I'm not swayed by arguments of "relative" justice.  What you're expressing is just the gut-level reaction to the real problem. 

The problem is the Jon Corzine effect (corruption).  You can't send the foot soldiers to jail and say the generals are all innocent with any level of credibility.  But that's what we're doing.  Nobody went to jail over..... anything that really matters.  Hell, we even sent some Enron guys to prison for that fiasco, but a complete collapse of the entire US financial system.... everyone's in the clear on that.  In fact, we encourage them to do it again.  Here's even MORE free money to help you along- have at it!

But if you want to have any chance of finding our way back to something like a fair and equitable system, you still have to punish the small offenders along the way, even if some of the big ones escape punishment (whether temporarily or permanently).  Throwing out rule of because you can't catch everyone in the net at the present time is a bad path to go down.  It might feel good for a while to cast aside the law in favor of some kind of "relative justice" but at the end of the day, dismissing rule of law HELPS the powerful and connected become even more powerful and more connected.

 

Tue, 04/30/2013 - 22:53 | 3516494 eatthebanksters
eatthebanksters's picture

Would someone just shoot that fucker Corzine?  A little cowboy justice to make us all feel better?

Wed, 05/01/2013 - 01:17 | 3516818 matrix2012
matrix2012's picture

The rambo justice will be a capital sin then...for it will set a good example for the muppets on how to deal with those unreachable Overloards out of courts, which must be a terrible nightmare for all in powers, in an amazing land whereas there are so many capital crimes pose no case at all.

Wed, 05/01/2013 - 02:48 | 3516899 fourchan
fourchan's picture

jews walk all others pay.

Wed, 05/01/2013 - 03:15 | 3516921 Popo
Popo's picture

Uhm... Isn't Alyenikov Jewish though?

Wed, 05/01/2013 - 00:27 | 3516751 Popo
Popo's picture

If it was "just" code though, this wouldn't be a big deal.

The reason it's a big deal is that this code can manipulate markets. So he's being tarred and feathered with the "market manipulation" brush.

And not a single regulator is asking the more obvious question:

Why does Goldman have software that manipulates markets?

And consider this: If anyone were to make the claim that "Goldman manipulates markets", they'd be labeled a conspiracy theorist. And yet they're burying a man for making an unauthorized copy of code which does exactly that.

Wed, 05/01/2013 - 00:27 | 3516774 ACP
ACP's picture

+1

Bravo!

Wed, 05/01/2013 - 00:41 | 3516793 James_Cole
James_Cole's picture

 

If it was "just" code though, this wouldn't be a big deal.

The reason it's a big deal is that this code can manipulate markets. So he's being tarred and feathered with the "market manipulation" brush.

 

It's a totally separate issue, proprietary algorithms are difficult to protect and the laws are sort of a gray area. He knew this and took the code to another company. Anytime you work for a company whose commercial work involves this you'll be signing big legal agreements but it's tough to protect. 

GS is the worst company in the world blah blah blah but that doesn't change the fact that stealing work he was paid to be involved with - and taking it to another company - isn't exactly noble. 

And he got off the charge..

Wed, 05/01/2013 - 02:47 | 3516901 fourchan
fourchan's picture

who is the real fucking theif the accuser or the accused? fuck goldman.

Wed, 05/01/2013 - 07:52 | 3517142 ExpendableOne
ExpendableOne's picture

Programmer here.  We ALL backup code we work on.  Nothing more terrifiying to a programmer than writing something clever only to have it lost to a server meltdown.  His problem with the squid is that he took the entire source tree and attempted to shop it to another company.  I personally think the trouble he's already been through is more than enough "punishment" though.  The courts have become bought and paid for assassins in this case and a couple of others (Reddit founder).

Wed, 05/01/2013 - 11:38 | 3518105 Lugnut
Lugnut's picture

Enron is one of the reasons these regulators are afraid to to go too hard on these TBTF banks. They saw 28,000 high paying jobs go up in smoke and went "well...shit, that wasn't good". Never mind the perps needed to go to prison. Its one thing when Enron goes boom, and quite another when one of the primary PDs does. I think thats why they get a get out of jail free card. Sucks ass. Corzine should definitely be doing a criminal charge perp walk.

BTW, I have no problem with Sergey going to the clink for trying to auction off the code. He should.

Wed, 05/01/2013 - 01:36 | 3516838 A Nanny Moose
A Nanny Moose's picture

Any sentence longer than ZERO under CURRENT circumstances is bullshit, as far as I'm concerned.

Fucking eh! Free Sergey.

Wed, 05/01/2013 - 01:27 | 3516802 matrix2012
matrix2012's picture

Zer0head, you just misplaced the headline terribly wrong!

 

U.S. Returns Baby to Russian Parents

 

30 April 2013 | The Moscow Times

 

A California court has returned a baby boy who was seized by U.S. authorities from his Russian parents (Alex and Anna Nikolayev) in a case that prompted loud denunciations from Moscow.

"After five hours of deliberation and analysis of factual information presented by both sides, the judge decided to dismiss all charges against the parents," said Igor Shaktarola, a diplomat from the Russian consulate in San Francisco, Interfax reported.

The Sacramento court on Monday also cautioned the parents to follow all future medical advice and not take 5-month-old Sammy from any hospital without proper discharge papers.

Sammy Nikolayev had been in protective custody since April 24 when police and child protective services removed him from his parents' apartment amid a dispute with the baby's doctors over his treatment.

After Sammy was treated for flu symptoms, doctors as the Sutter Memorial Hospital in California decided that he needed an immediate heart surgery. The parents took the baby boy from the hospital for a second opinion without obtaining a proper discharge.

"We are aware Sammy's heart murmur and have consulted a cardiologist every two weeks," said the child's mother, Anna, Interfax reported. "No one ever gave any reason to think his health was in any imminent danger and there was a need for an emergency surgery."

The police and child protective services claimed "severe neglect" in their decision to take the baby.

At the moment, the baby is hospitalized for further treatment, but child protective services have authorized the parents to be with him, children's rights ombudsman Pavel Astakhov said on Twitter.

Astakhov also confirmed that the boy's parents are dual citizens of Russia and the U.S. He said the boy does not have Russian citizenship, a process that requires a special procedure and parental consent.

Sammy's case quickly gained widespread public attention and media coverage in both Russia and the U.S., with Astakhov lodging a fierce protest over what he described as U.S. interference into the rights of a Russian family.

################

RT.com highlighted the story yesterday, at which the couple testified among other on how facebook repeatedly shut down their pages because they were used to rally support on the couple's case...

What a scary land to live on....expect more when getting closer and closer to the complete fascism

Tue, 04/30/2013 - 20:58 | 3516141 Zer0head
Zer0head's picture

.

Tue, 04/30/2013 - 20:53 | 3516143 espirit
espirit's picture

His name is Sergey Aleynikov.

Tue, 04/30/2013 - 20:56 | 3516155 samsara
samsara's picture

They didn't want to silence him.
They wanted to make an example.

Like whistle blowers

Tue, 04/30/2013 - 22:01 | 3516312 xtop23
xtop23's picture

Exactly. They don't really give two squirts of piss about this guy. 

They're just giving a little demonstration for others.

Wed, 05/01/2013 - 06:38 | 3517057 smbc1066
smbc1066's picture

Haha! That is brilliant!

Tue, 04/30/2013 - 21:18 | 3516200 RafterManFMJ
RafterManFMJ's picture

Steal from the crooks!? That's double-plus bad!

Tue, 04/30/2013 - 21:35 | 3516249 OutLookingIn
OutLookingIn's picture

"We hang the petty thieves and appoint the great ones to public office."

- Aesop

Tue, 04/30/2013 - 21:56 | 3516303 PeakOil
PeakOil's picture

Abso-fucking-lutely!!

Tue, 04/30/2013 - 20:35 | 3516084 Scro
Scro's picture

Tyler

Love the FilipinoCupid.com Ads

Tue, 04/30/2013 - 20:49 | 3516119 Aurora Ex Machina
Aurora Ex Machina's picture

If you don't know that ads are targeted personally by now, you need to.

 

So, yeah, thanks for that insight into your sexual preferences and all, but you'd probably be better off keeping it on the QT.

 

 

 

<My ads have Squirrels in them!>

Tue, 04/30/2013 - 21:01 | 3516168 Aurora Ex Machina
Aurora Ex Machina's picture

Only Americans could possibly mistake a ferret for a weasel. [Oooh, so meta-commentary on the story, swoon!]

Tue, 04/30/2013 - 21:25 | 3516219 NidStyles
NidStyles's picture

I have no ads. I'm a ghost WWOOOOOoooooOOOOO!!!

Tue, 04/30/2013 - 21:30 | 3516235 Aurora Ex Machina
Tue, 04/30/2013 - 22:51 | 3516477 espirit
espirit's picture

Albanian hookers, Ethiopian albino dwarves, Icelandic elves...

You know, the usual suspects.

Tue, 04/30/2013 - 23:40 | 3516648 knukles
knukles's picture

Last thing you want to complain about are the fucked up ads you get.
Betcha the same folks go out of their way to get carry permits and register their firearms in no register necessary domiciles.
And tell everybody about their PM stash they keep at home.  Which they bought on line with a credit caed.  In the garage.  On a shelf.  In the cutout red plastic gas can because nobody'd ever think to look there. 

Wed, 05/01/2013 - 00:50 | 3516797 James_Cole
James_Cole's picture

One thing that worries me - because I don't know if it's a co-incidence or not - I saw a movie the other night at theatres and there was an ad for some movie I've never heard of, never seen an ad for it, never looked it up. No famous looking actors in it, looks low budget.

Anyway, now I'm getting targeted ads for it constantly! It's the only movie I get ads for. I've never looked up anything about it... does Google know what movies I've seen and what was advertised at those movies?? Has google become psychic...self aware??

Wed, 05/01/2013 - 11:06 | 3517908 JimBowie1958
JimBowie1958's picture

Whatever movie (lets call it movie B) you went to see that had ads for movie A is a movie that the producers of movie A think is the same target demmographic as movie A.

Now you may not have ever looked for info on movie A but you have likely looked for stuff on movie B since you did go and see that one. The publicists for movie A are likely buying the data built up for movie B and you are on that list of folks interested in B so now you geet shit on A.

Hope that helps.

Tue, 04/30/2013 - 21:47 | 3516283 mofreedom
mofreedom's picture

not directly targeted...i've onle been with blondes and one red head by accident.  dark haired women, oh yea there was one, have big hairs growing out of their t's.

Tue, 04/30/2013 - 22:02 | 3516322 xtop23
xtop23's picture

Hilarious. Thx for that.

Mine has Livestrong on it. Does that mean I get to nail Sheryl Crow?

Tue, 04/30/2013 - 22:22 | 3516388 pods
pods's picture

Nope, one ball more.

pods

Tue, 04/30/2013 - 23:37 | 3516640 xtop23
xtop23's picture

Dammit, always a catch.

Wed, 05/01/2013 - 01:35 | 3516835 matrix2012
matrix2012's picture

what ads...which ads... i just see a very clean page here, only carrying texts, charts, pics and WB7 works 

must be missing the cutie Filipino cupid ;)

Tue, 04/30/2013 - 21:01 | 3516170 Jim in MN
Jim in MN's picture

Great song by a great band.  Here is a rare early live clip.

http://www.youtube.com/watch?v=xhDwuNIAh2o

'Damaged Goods' 1980

Tue, 04/30/2013 - 20:23 | 3516036 buzzsaw99
buzzsaw99's picture

jesus fucking christ it's hopeless

Tue, 04/30/2013 - 20:47 | 3516115 TotalCarp
TotalCarp's picture

Yes it is. We talk so much here about corporate coruption on all levels but its the utter destruction of ny courts which have turned themselves into a vicious sham that is most troubling - and least obvious to general public

Tue, 04/30/2013 - 20:57 | 3516157 Pure Evil
Pure Evil's picture

Ah, poor Sergey, Uber Villain.

Did he not think to abscond when he had the chance? Did he even have a chance?

Of course, the mere mundanes have to be excoriated to educate other mundanes their caste in American society.

And, the only transparency the Obama regime can highlight is that it is possible to be even more evil than the Bush regime.

Tue, 04/30/2013 - 20:25 | 3516043 Thomas
Thomas's picture

Those fuckheads. If I got sent to jail like that, I would like to believe I still had enough spine to get even when I got out. If Goldman went down for the count, I would dance in the streets. Capitalism would be on the mend.

Tue, 04/30/2013 - 20:47 | 3516120 machineh
machineh's picture

 

'A federal appeals court in New York overturned his sentence ... but New York State resurrected the case against the Russian and charged Aleynikov with two felonies under New York state law.'

USSA: the world's only country whose citizens face not one, but TWO parallel legal codes ... despite an explicit constitutional prohibition on double jeopardy.

 

Welcome to the Gulag, comrades! SSDC (same shit, different country).

Tue, 04/30/2013 - 20:27 | 3516044 DoChenRollingBearing
DoChenRollingBearing's picture

I still do not understand how there is any justice in the USA with Biggest P.O.S. on Planet Earth Jon CorzineTM still on the loose.

Tue, 04/30/2013 - 20:57 | 3516156 Atomizer
Atomizer's picture

Jon Corzine no longer matters. We all know the connections. Fear resides within the connections to bury the ugly past. We have also identified  the next tier up. Good luck protecting your sorry asses. Even if Obama revokes guns, your sorry souls will be on the run.. Just remember, you created this monster. When they figure it out, planet earth become very small.

Tue, 04/30/2013 - 21:37 | 3516261 erg
erg's picture

She's now called Joan Corzinette after the sex-change operation and she's living in Janet Nepolitano's bathroom. Kept the beard though.

Tue, 04/30/2013 - 22:07 | 3516342 Atomizer
Tue, 04/30/2013 - 20:24 | 3516045 Cognitive Dissonance
Cognitive Dissonance's picture

The law is intended and designed to protect the powerful few from the weak masses. It's as simple as that.

Tue, 04/30/2013 - 20:30 | 3516066 toys for tits
toys for tits's picture

I've heard that they're attempting to ban flaming torches and pitchforks.

http://www.youtube.com/watch?v=yq1KeyEARBU

Tue, 04/30/2013 - 22:39 | 3516447 Overfed
Overfed's picture

No, no, it goes a little more like this:

http://www.hark.com/clips/zzmjhlxjfc-a-riot-is-an-ugly-thing

Tue, 04/30/2013 - 20:31 | 3516067 nmewn
nmewn's picture

Correct.

There is no more law. Now we have tyranny, again. Plan accordingly ;-)

Tue, 04/30/2013 - 20:46 | 3516110 Harbanger
Harbanger's picture

Planning accordingly means connecting beyond the internet.  People are talking online now but that's the easiest thing to be cut-off.  Then what?

Tue, 04/30/2013 - 20:46 | 3516117 Jim in MN
Jim in MN's picture

Find a bunch of people that dress alike and follow them around (I stole that from Firesign Theater).....

Tue, 04/30/2013 - 20:53 | 3516133 samsara
samsara's picture

We're the leaders of tomorrow,
Ya, but it's only today.

... anybody got any string?
.... Anybody got any lynch?

... He even looks like the kid.

Tue, 04/30/2013 - 21:02 | 3516172 Harbanger
Harbanger's picture

LoL?  I'll wear my ZH cap so they can find me in a crowd.  The problem is the web is a double edged sword right now.  People that are awake need to consider this.

Tue, 04/30/2013 - 20:55 | 3516139 samsara
samsara's picture

Your planning should start with family
Then close friends.

Work outwards from there

Tue, 04/30/2013 - 20:59 | 3516158 nmewn
nmewn's picture

I have made plans, I suspect you have too, a lot of people are making plans...off-net.

Until they put a bug on every park bench, every office break room, every coffee shop & bar...contingencies will be made & talked about in the open among those who are aware.

All "they" see here is talk. They have no idea of the real depth of the dissention, which is good ;-)

Tue, 04/30/2013 - 22:17 | 3516368 nmewn
nmewn's picture

Most of it is us. People.

If we would quit buying, it would level off, then down...my personal opinion. I see it everyday, went to XYZ, bought the last 1,000 rounds they had.

From Black Hills...

"Kristi Hoffman, co-owner...

“We don’t like this kind of business,” Ms. Hoffman adds. “Don’t get me wrong, money and business is still good, but we prefer to have nice, steady growth instead of having spikes because of political and economic reasons.”

In the end, says Malchon, the ammo hoarding that is going on “is primarily private indivudals, rightly or wrongly. The survivalists, they’re the ones sitting there with probably 10 cases of ammunition." He adds, "It doesn’t make any sense, but does it make a lot of people feel better? The answer is yes, so what can you say?”

I think everybody has enough by now (for whatever)...besides, I'm a cheap bastard anyways ;-)

Tue, 04/30/2013 - 21:40 | 3516272 NidStyles
NidStyles's picture

You're the one on the Internet acting like you haven't made the next step already.

Tue, 04/30/2013 - 21:00 | 3516162 PeaceLover
PeaceLover's picture

On that note take the 18 min to look at a smart man that has it right.

http://www.ted.com/talks/lawrence_lessig_we_the_people_and_the_republic_...

Tue, 04/30/2013 - 22:12 | 3516349 kill switch
kill switch's picture

This is BULLSHIT AS USUAL THERE IS no Justice system in this fucking country, it's a legal system that is impenitent to come to rational endings. This is disgusting!!!!!!!!!!!!!!!!!!! We are all fucked if we don't come to an uprising. PURE AND SIMPLE...NO????? Wake the fuck up!!!!!!!!!!!!!! Well I don't give a fuck now I will be leaving this shit hole soon and the effort to fight on is moronic,,, they have the Amerikan people by the BALLS forever... It's true but unbelievable by most.

Tue, 04/30/2013 - 23:58 | 3516702 knukles
knukles's picture

Understand that there is no white knight, savior, posse with the sheriff riding into the scene to save the land and people.
There is no relief, we're fucked, nobody gets out alive.

 

End of Conversation.

Tue, 04/30/2013 - 20:24 | 3516046 KashNCarry
KashNCarry's picture

Scapegoat...

Tue, 04/30/2013 - 20:29 | 3516053 FieldingMellish
FieldingMellish's picture

The system works as intended... just not the way we intended.

Tue, 04/30/2013 - 22:44 | 3516455 Overfed
Overfed's picture

It's not working the way the Founders intended, but it's working exactly the way the present PTB intend.

Tue, 04/30/2013 - 20:26 | 3516055 They Tried to S...
They Tried to Steal My Gold's picture

This will only stop when one of their heads is found on a NYC subway train during rush hour....

 

With a stamp on it - FREE CHECKING

Tue, 04/30/2013 - 20:34 | 3516078 Slightly Insane
Slightly Insane's picture

One won't do it.  Ten might, but 50 for sure would get the message accross.

Tue, 04/30/2013 - 20:44 | 3516105 techstrategy
techstrategy's picture

Much as I hope you are wrong, I think the arrogant assholes that run TBTF/SIFI/FED don't see that you are right about where this is heading.  They will "win" by using leverage against investors (they have infinite leverage given on a daily POMO basis and no one else does), but they will find themselves targets for the rest of their lives.  The National Guard and NYPD would not have a fighting chance against the gangs of NYS should they decide to reappropriate the wealth that the banksters have stolen over the past few decades...

The banksters are going to learn Maslow's Hierarchy of Needs the hard way.  They will have all the money in the world, but none of the security for themsselves or their family once their financial weapons of mass destruction have made it so that most of the rest of the world has little to lose...

Tue, 04/30/2013 - 21:32 | 3516234 alien-IQ
alien-IQ's picture

i promise that if ever that were to happen i will throw a party.

Tue, 04/30/2013 - 20:30 | 3516057 FieldingMellish
FieldingMellish's picture

In Soviet Amerika, criminals jail you.

Tue, 04/30/2013 - 20:53 | 3516142 machineh
machineh's picture

'Zweibel said Aleynikov was not deprived of his right under the 5th Amendment of the U.S. Constitution not to be tried twice for the same offense.'

... when the truth is self-evidently the precise and exact opposite. 

Qui est ce juif malhonnête?

Tue, 04/30/2013 - 21:31 | 3516230 alien-IQ
alien-IQ's picture

Well said. I'm gonna have to use that someday.

Tue, 04/30/2013 - 20:30 | 3516059 toys for tits
toys for tits's picture

 

No soup for you!

Tue, 04/30/2013 - 20:28 | 3516061 cherry picker
cherry picker's picture

I'm a programmer.  No wonder the US has the highest per capita incarceration rate in the world, except for the people who are connected, like Cheney, George W, Obama and Corzine.  Why does a country which describes itself land of the Free have so many people in jail?  Ever ask yourself that?

How much of that code that Goldman has isn't stolen?  I would demand to take a look at it to make sure that those ideas don't belong to someone else.

Then again, maybe Anonymous may do all of us a favor and hack the squid.  That would be a nice challenge in the name of justice for all the big TBTF banks paid a lot of money for breaking the law the past few years so as far as I am concerned they are corporate felons which have to pay the price.

 

Tue, 04/30/2013 - 20:45 | 3516107 delacroix
delacroix's picture

is that the code goldman stole from armstrong?

Tue, 04/30/2013 - 20:46 | 3516118 samsara
samsara's picture

I don't think they ever got it

Tue, 04/30/2013 - 20:34 | 3516074 Rehab Willie
Rehab Willie's picture

obviously he is not part of the "JUST US" system

Tue, 04/30/2013 - 20:39 | 3516089 thisandthat
thisandthat's picture

Capitalism is about the primacy of capital, not morals or society...

Wed, 05/01/2013 - 04:04 | 3516950 thisandthat
thisandthat's picture

lol - no deluded people 'round here, no siree...

hey, who knows, maybe, just maybe, it's all just a question of belief, after all - dream long/hard enough and your fantasy automagically becomes true...?

Wed, 05/01/2013 - 04:09 | 3516956 bunnyswanson
bunnyswanson's picture

What Lincoln Foresaw:
Corporations Being “Enthroned” After the Civil War
and Re-Writing the Laws Defining Their Existence

by Rick Crawford, crawford@cs.ucdavis.edu

Here is a sobering quote by Abe Lincoln:

“I see in the near future a crisis approaching that unnerves me and causes me to tremble for the safety of my country. . . . corporations have been enthroned and an era of corruption in high places will follow, and the money power of the country will endeavor to prolong its reign by working upon the prejudices of the people until all wealth is aggregated in a few hands and the Republic is destroyed.”—U.S. President Abraham Lincoln, Nov. 21, 1864

(letter to Col. William F. Elkins)

Ref: The Lincoln Encyclopedia: The Spoken and Written Words of A. Lincoln
Arranged for Ready Reference, Archer H. Shaw (NY, NY: Macmillan, 1950)

(he also said, in so many words, capitalists conspire together, even as competitors, to fleece the citizens of every last dime in their pockets)

I feel at this moment more anxiety for the safety
of my country than ever before, even in the midst of war.
God grant that my suspicions may prove groundless.”

Wed, 05/01/2013 - 11:39 | 3518052 monad
monad's picture

Capitalism is about your right and freedom to dispose of your private property, including your labor and all fruits thereof, as you wish. Left, right, oligarchy or kleptocracy, statism is the opposite. The USA needs a 3rd party because the 2 it has are both Statist.

Wed, 05/01/2013 - 16:23 | 3519579 thisandthat
thisandthat's picture

Capitalism is about profit - whatever it takes <period>

There was private property thousands of years before even the slightest resemblance of  capitalism ever came about.

Wed, 05/01/2013 - 19:44 | 3520387 monad
monad's picture

The first government ever to set men free was the USA. the Constitution is a retriction only on government power, not on the sovereign citizens, who have since been systematically duped and betrayed by their representatives, who are all traitors since congress codified the treason after WW2 and every congress since has quietly bent to it. Before that all men were property. Prove me wrong. FU SCOTUS

Thu, 05/02/2013 - 01:01 | 3521366 thisandthat
thisandthat's picture

Prove you wrong? On what grounds - do I owe you anything? Prove yourself right, if you will...

Btw, FIY the US constitution draws directly and entirely from the French revolution and its Declaration of the Rights of Man and of the Citizen... but what does that got to do with anything above, anyway?

Thu, 05/02/2013 - 10:48 | 3522367 monad
monad's picture

Of course you don't owe me anything, but when you make silly statements I get to ridicule them.

Thu, 05/02/2013 - 12:16 | 3522783 thisandthat
thisandthat's picture

Are you sure it's not the other way around? What silly statements did I make and which did you ridicule?

Tue, 04/30/2013 - 20:40 | 3516101 grunk
grunk's picture

The lawlessness means that we're closer to the end.

FREE SERGEY!  

Tue, 04/30/2013 - 20:43 | 3516103 Downtoolong
Downtoolong's picture

The irony is that if the FBI and SEC really wanted to ensure free and fair markets, they would themselves be demanding to see and analyze Goldman’s code and that of every other HFT algo out there before it can be used.

What’s happening with automated trading systems in the financial markets today is tantamount to drug companies producing and marketing products without any test trials or FDA approval. In other words, anything goes.

Tue, 04/30/2013 - 21:00 | 3516160 Aurora Ex Machina
Aurora Ex Machina's picture

It's more akin to the Mexican Cartels, fyi.

Tue, 04/30/2013 - 20:46 | 3516108 Jim in MN
Jim in MN's picture

There is no gay marriage.

There is no tax reform.

There is no Obamacare.

There is no cap and trade.

There is no immigration.

There is no budget.

There is no Social Security.

There is no Guantanamo.

THERE IS ONLY CORRUPTION.

There are no other issues.  Refuse to be drawn in.  Only the perversion and destruction of our Republic and our Constitution by these lazy, greedy, immoral psychopaths merits your time and that of your family and friends and acquaintances and shopkeepers and co-congregationalists.

Issues are only allowed, entertained, trifled with, spun between the elite fingertips like a ripe fruit, to the degree that they do not interfere with, or better, actively distract from, corrupt criminal practices at the highest levels of power.

 

Now, somone tell MSNBC and Fox News......LOL......we are so fucked.....

Tue, 04/30/2013 - 20:58 | 3516151 infinity8
infinity8's picture

Great comment! +1

Tue, 04/30/2013 - 20:46 | 3516111 Divine Wind
Divine Wind's picture

 

 

I am wondering what task the code he stole actually performs.

Considering the way they are coming after him, it sure must have been important.

Perhaps they are seeing trading signatures and patterns specific to those programs showing up in others activity?

Perhaps someone has figured out how to end run the Squid as a result of the code, thus causing Blankfein and Co. the loss of significant sums?

OR

Is this another Martin Armstrong type of situation where he is refusing to give up something much bigger?

Tue, 04/30/2013 - 21:17 | 3516199 Zer0head
Zer0head's picture

sextapes

Tue, 04/30/2013 - 20:46 | 3516113 samsara
samsara's picture

Give us Barabas
Give us Corzine

Tue, 04/30/2013 - 20:50 | 3516124 Seasmoke
Seasmoke's picture

He had a better chance for justice under Putin.

Tue, 04/30/2013 - 21:26 | 3516220 alien-IQ
alien-IQ's picture

I'll bet he's thinking the same thing.

Tue, 04/30/2013 - 20:52 | 3516134 Aurora Ex Machina
Aurora Ex Machina's picture

Well, GS just ensured that every HFT programmer puts in a Samson Option in their code, since few of them actually can actually read the language it's written in.

 

Real smart boys. Remind me again about the difference between wisdom and intelligence.

Tue, 04/30/2013 - 20:53 | 3516135 Monedas
Monedas's picture

Leave Capitalism out of this .... 

Tue, 04/30/2013 - 20:55 | 3516140 Kirk2NCC1701
Kirk2NCC1701's picture

Oh vey, he nyet so smart. Next time, you first immigrate to Holy Land, get citizenship & passport, then kome to Amerika.

What he did was not Kosher. Other friends from Mother Russia who do it the korrekt vay, never ever have single problems. Can work on any job, have freedom, access, friends in right places to smooth out all misunderstandings.

Mazel gov.

Tue, 04/30/2013 - 20:58 | 3516144 W T F II
W T F II's picture

Empires ALWAYS end the SAME way. Slide on the Winter side of the Kondratiev Wave. As we slide down to the right-sloping late-Fall part of the curve, approaching the cliff into the abyss of the deep freeze of the multi-year bottom, those in control do anything to maintain their unsustainable grip. Of course, that is a Fool's errand, but futilely the more they sense the slide, the tighter they grip.

We are done..!!

Tue, 04/30/2013 - 20:58 | 3516164 q99x2
q99x2's picture

Probably the indirect result of drugs and alcohol. I've seen a lot of that in AA where circumstances in life cause a person to change course and become a much greater fully developed personality as a result. With the too far Corzine that probably was not possible.

Tue, 04/30/2013 - 21:12 | 3516181 MFLTucson
MFLTucson's picture

Disgraceful as one would expect in the land of whores!

Tue, 04/30/2013 - 21:14 | 3516197 HowardBeale
HowardBeale's picture

I'd like to give Aleynikov a chain saw and five minutes in a locked cage with Corzine, Blankfeind, and Dimon...

Tue, 04/30/2013 - 21:22 | 3516214 alien-IQ
alien-IQ's picture

Hey wait a minute! Why are you giving him all the fun time? A lot of us here want some time with those boys also.

Wed, 05/01/2013 - 09:21 | 3517397 pherron2
pherron2's picture

Poor bastard wouldn't stand a chance with those hyena's, he'll need more than a chainsaw.

Tue, 04/30/2013 - 21:18 | 3516208 freedogger
freedogger's picture

Making a copy is not stealing. They still have their shitty source code. WHO IS THE VICTIM here? GS was still able to rig the markets better than they ever have. This is pure evil. A felony? Cruel and unusual punishment.

Tue, 04/30/2013 - 21:25 | 3516217 alien-IQ
alien-IQ's picture

If anyone here still believes Amerika has a functioning justice system and is NOT an oligarchy, please step forward and receive your dunce cap and thirty lashes.

Tue, 04/30/2013 - 21:39 | 3516255 22winmag
22winmag's picture

The plea bargain racket made a mockery of criminal justice. Now "deferred prosecution" is making a mockery of civil justice.

Tue, 04/30/2013 - 21:35 | 3516244 highwaytoserfdom
highwaytoserfdom's picture

You might hope Vance grabs a set of balls like his Dad did by changing his views on Nam and telling Zigy to pound SALT.   Ironic how these interventionist neo cons can really screw things up...   There is a leson here with Sergey. YOU CAN EXPOSE EVIL.   The question is if the sheeple turn around before the cliff..  

Tue, 04/30/2013 - 21:32 | 3516245 shovelhead
shovelhead's picture

Glad to see the prosecutors finally got over their debilitating fear of reasonable doubt.

This must mean we shall see Mr. Corzine on the docket soon?

Tue, 04/30/2013 - 21:34 | 3516247 22winmag
22winmag's picture

Wait a minute... what happened to "deferred prosecution" option that the big fish get?

 

You can bet if this guy a) had a sweet vagina or b) had billions stashed away that he'd have the opportunity to enter a deferred prosecution deal.

Tue, 04/30/2013 - 21:45 | 3516278 Ned Zeppelin
Ned Zeppelin's picture

Well, let's just say the justice system in this country is just a little bit fucked up, and leave it at that. Best lesson here? If you want to minimize your chances of getting completely screwed, stay away from the squid.

Wed, 05/01/2013 - 10:28 | 3517731 Jim B
Jim B's picture

Best justice money can buy....

Tue, 04/30/2013 - 21:58 | 3516300 Payne
Payne's picture

seems like this guy could write program to crash the system(HFT), maybe that is why they want him in jail.

Wed, 05/01/2013 - 01:13 | 3516817 quartshort
quartshort's picture

+1

 

 


I dont know about crashing it... Conjecture here but my guess is he would use it to get fucking stupid rich. Jail competiton outright. Level the playing field? Can't have that!

 

 

 

 

 

Tue, 04/30/2013 - 21:57 | 3516304 MedicalQuack
MedicalQuack's picture

I agree here totally being a former developer myself, although not financial but code is code.  What I am saying is let's take the next step up here and get the Goldman model that he programming for and check the math there.  I think it's a good idea and Goldman would of course want no expsoure there:)

He can't even get a jury of peers for this either.  Someone could march up any old code module and if he says he has seen it and understood what it does, a jury with no tech knowledge would say guilty, so not fair there either to expect this from jury either as it's deep. 

http://ducknetweb.blogspot.com/2013/04/former-goldman-programmer-still-o...

So again I will make mention of that great Quant video which is the only one I have found that has been done that gives the layman a "real" idea of what goes on where they can get the picture and not have to be a mathematician and still understand.

http://ducknetweb.blogspot.hk/2012/09/quants-alchemists-of-wall-street-v...

Makes you wonder too why the Quants code of ethics which was origianlly done is being redone over so many times and the quants don't want the exposure either.  I really would like to see Goldman prove that there was "real" value in the code and get to the bottom of this. 

Tue, 04/30/2013 - 22:18 | 3516365 calltoaccount
calltoaccount's picture

just fyi-- when one attempts to access the site you cite: http://ducknetweb.blogspot.hk/2012/09/quants-alchemists-of-wall-street-v...

 

the view at the top is obstructed by a succession of Wall Street co. banners that you can't click away...


Tue, 04/30/2013 - 22:57 | 3516483 Aurora Ex Machina
Aurora Ex Machina's picture

Use Firefox or Chrome.

Install:

Adblock

Ghostery

HTTPS everywhere

NoScript

(Tor and proxies are probably a little too complex for this beginners class)

 

If you're surfing without these, you're a muppet. Then learn how to whitelist ad content from sites such as ZH to give revenue, or just do the sophisticated thing and wire $200 across to Tyler's account so you don't feel guilty, and continue to surf tracker / adfree. Anyone claiming to be in the investment world should have done this already, and if you're rich, slap down $2k instead. ZH is fun, fun, fun, and much cheaper than MSM. Heck, if you're American, call it a political contribution and claim the tax back...

Wed, 05/01/2013 - 00:04 | 3516713 freedogger
freedogger's picture

And you can disable them on sites you like. www.zerohedge.com fer instance.

Wed, 05/01/2013 - 01:23 | 3516820 quartshort
quartshort's picture

I used to give a shit like 5+ years ago. Now this muppet wants "them" to know exactly wtf I am looking at and learning about. I don't give fuckall. 

What is that buzzing noise over my house anyway? :)

Tue, 04/30/2013 - 22:40 | 3516439 toros
toros's picture

Free Corzine!

Tue, 04/30/2013 - 23:13 | 3516568 ebworthen
ebworthen's picture

HANG JON CORZINE!

Wed, 05/01/2013 - 02:26 | 3516887 ShakaZulu
ShakaZulu's picture

He looks guilty to me.

Wed, 05/01/2013 - 03:04 | 3516916 dunce
dunce's picture

The secret code is like a date rape drug, afterwards the victim knows he has been thoroughly screwed, and can not figure out how it happened, but is pretty sure who did the deed.

Wed, 05/01/2013 - 06:55 | 3517070 overmedicatedun...
overmedicatedundersexed's picture

This article and comments is why ZH stands alone.

Here is a story on our banks: when I was a young man, my father was the ceo of a small failing commuter airline..after lots of hard work and long hours and years of toil, the airline became profitable ...after 6 months of being in the black, he got a call from his bankers to meet.

At the meeting one of the board members of the bank (a former ambassador to the UN and national political figure)..said we see your airline has turned the corner and YOU NOW NEED PARTNERS WE WANT IN. Dad said no . But threats of calling his debt was implied..As a young man at that time in America, I thought it was just one corrupt bank..how stupid was I?

Wed, 05/01/2013 - 10:23 | 3517688 ToNYC
ToNYC's picture

An individual with leverage is a mortal threat to a corrupt master working smoke and mirrors.

Wed, 05/01/2013 - 11:47 | 3518173 dolph9
dolph9's picture

Does anybody doubt that the United States is the single most corrupt nation on this planet?

Do NOT follow this link or you will be banned from the site!