Small Victories: Sergey Aleynikov Edition

Goldman Sachs does not have to pay the people trying, at its behest or otherwise, to put former programmer Sergey Aleynikov in jail (again). But it does have to pay to try to keep him out of jail. For now. Unless he does go to jail (again). Then all bets are off. Which is good for old Sergey (for now), because, as you might imagine, given the ordeal he’s been through, he’s broke.

Mr. Aleynikov sued Goldman Sachs in 2012 in federal court in New Jersey, seeking to both recoup his legal fees from the federal criminal trial and get an advancement of fees for his trial in state court.

The judge said Goldman Sachs must advance fees for the state trial but deferred a final ruling on fees incurred during the federal trial. Judge McNulty noted that in previous court filings, lawyers for Mr. Aleynikov said Goldman Sachs had paid the legal fees of 51 of 53 people who sought them, including 15 who, like him, were vice presidents.

If Mr. Aleynikov is convicted in state court, Goldman Sachs can seek reimbursement of the funds it provided, the judge said.

The judge called the issue of whether Mr. Aleynikov was an officer a “close question,” citing the fact that the term “vice president” is something of a “courtesy title” in the financial-services industry. But he also said “it is uncontroversial that a ‘vice president,’ at least in the corporate context, is a kind of officer.”

Goldman Ordered to Pay Legal Fees in Code-Theft Case [WSJ]

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Comments (8)

  1. Posted by Guest | October 23, 2013 at 4:04 PM

    No such thing as a "courtesy title" on Wall Street.
    — Executive Partner Managing Director of Stercoral Clearing Operations, Goldman Sachs

  2. Posted by Guest | October 23, 2013 at 5:01 PM

    Wait, Dominic West is a judge?

  3. Posted by Guest | October 23, 2013 at 5:04 PM

    Of course it's an officer, Goldman Sachs has over 30,000 Vice Presidents, all of whom Lloyd confers with before moving the business in any direction.

    Dick Cheney

  4. Posted by Missing Matt | October 23, 2013 at 5:36 PM

    Well, there's at least one I know he conferred with on all footnote related matters.

  5. Posted by schmitty | October 23, 2013 at 5:45 PM

    too much shazar

  6. Posted by Paren (tal guidance) | October 23, 2013 at 10:45 PM

    (learn how to write(sensibly))

  7. Posted by Xenomorph | October 23, 2013 at 11:50 PM

    Crap that's a lot of pacemakers.

    GS HFT is really the firm's life support???

  8. Posted by Jamie Dimon | October 25, 2013 at 11:03 AM

    Damn right!

    Jamie Dimon, Chairman Emeritus, JP Morgan