Federal Government Asks for Closed Courtroom to Protect Goldman Sachs Secrets

Friday, October 29, 2010
The U.S. Department of Justice has requested that a federal judge seal the courtroom of a trial involving computer code theft in order to protect trade secrets of Goldman Sachs.
Sergey Aleynikov was arrested by the FBI on charges of stealing computer code that supports Goldman’s high frequency trading system, which allows the bank to buy and sell stocks in a fraction of a second.
Goldman Sachs and others use “flash trading” to send out automated sell offers at higher and higher prices until one comes back with no buyer. The program then drops back to the highest acceptable price and sells at what the buyer set as his maximum limit. This allows Goldman to always obtain the best possible selling price, while the buyer loses the normal give and take of bargaining. In the case of large orders, such as those from pension funds or mutual funds, this can cost the buyers a small fortune.
Federal prosecutors have argued that the general public should not be allowed to observe the trial when details of Goldman’s trade secrets are discussed. They also asked that any documents related to Goldman’s trading strategies be sealed.
While it is common to protect proprietary corporate information during trials, the case of Aleynikov is unusual because it involves “secrets about a potentially lucrative trading system, rather than, say, ingredients in a soda formula,” wrote the Wall Street Journal.
-Noel Brinkerhoff, David Wallechinsky
U.S. Seeks to Shield Goldman Secrets (by Scott Patterson, Wall Street Journal)
See all 11 comments


John Rutledge 11 years ago
Considering all the people as well, as the many business that have been hurt by Goldman's lest then honorable practices how can any one argue for privacy of trade secrets. When the trade secrets use are not honorable.
Dom D. 11 years ago
I am a CMKX shareholder, I am a victim of Goldman Sachs.
oscar montesinos 11 years ago
HAN SAQUEADO A EL TESORO AMERICANO con esto de la sub prime , una lastima los contribuyentes estan en otra galaxia
CapnCrunch 11 years ago
This is the land where nothing is free and home of the slave.
Barry Bliss 11 years ago
Shouldn't we tax payers own Goldman Sachs?
JoephConrad 11 years ago
Just to show you all how SICK this nation truly is, NOT ONE Goldman-Sachs employee has had the COURAGE, MORALITY, HONOR, HONESTY OR GUTS to come forward and blow the whistle on the THIEVES, THUGS, LIARS & CHEATS hwo were mere FRONT MEN for the 2,000 or so Wealthy Old White Men who've been RAPING the US since the Federal Reserve appeared in 1913! Where are the men of the Land of the Free & Home of the Brave with Courage and Honor to put these Goldman Sachs FELONS IN PRISON? Well, they're off lynching Black men in Georgia & torturing Muslims in Iraq! Cowards and Gutless Wonders All The Bankers can HAVE America-Game Over!
Jack Flash Trading 11 years ago
I cant wait for the day when the only thing they will be trading is top roman from the prison commissary.
ak 47 blog 11 years ago
Bureaucratic apparatus ask to hide Goldman Sad Sacks computer code secrets. You have to be kidding? A lone 1900's uneducated foreign immigrant copied and imitated crony financial and gangbanksters methodology with a slide rule. 50 years prior to electronic calculators, sophisticated computer systems, and ultra high speed computer applications. Cryptic computer code is nothing more than accelerated logarithm and algorithm pyramid and reverse pyramid scams or deception of the 'magic of compound interest.' The primiary SECRET that is being argued by corrupt bureacratic apparatus is to keep Wall Street underachievers from being charged on RICO ACT Statute for criminal conspiracy. Get with it guys and gals.....http://21stcenturyreversepyramid.blogspot.com/
ofb2632 11 years ago
So they will always stiff the buyer and have the advantage against the public. Yes, i would love to see this trial.
tenantlaw 11 years ago
Can't Goldman afford their own lawyers?

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