Cyrus Vance is out to show that he doesn’t only ruin people’s lives on Goldman Sachs’ orders. He’ll do it for prominent hedge funds, too.

A former analyst for hedge fund Two Sigma Investments LLC was indicted in New York on Tuesday on state charges he stole information about the fund’s confidential computer trading models.

Kang Gao, a Chinese national who worked as an analyst for the fund, was indicted on 11 felony counts related to the theft and copying of secret information about the hedge fund’s trading methods, according to an indictment released by Manhattan District Attorney Cyrus Vance….

Between August and January, Gao remotely accessed computers at Two Sigma Investments and emailed himself documents describing the fund’s computer trading models, according to the indictment….

Fund spokeswoman Kelly Howard said: “Two Sigma takes the protection of our intellectual property very seriously. We became aware of potential felony criminal activity of an employee, promptly informed the Manhattan District Attorney and terminated his employment.”

Former hedge fund analyst indicted in NY for trading model theft [Reuters]

6 comments (hidden to protect delicate sensibilities)
Show all comments ↓

Comments (6)

  1. Posted by Nervous WSO Poster | March 12, 2014 at 12:10 PM

    So what about that LBO model I emailed myself from my internship?

  2. Posted by guest | March 12, 2014 at 1:01 PM

    Vance is going to turn up the heat on the Kang Gao.

  3. Posted by Finance Troll | March 12, 2014 at 1:37 PM

    Chinese theft of intellectual property? Shocking.

  4. Posted by Quant me maybe ... | March 12, 2014 at 3:15 PM

    I would be embarrassed. Imagine if it got out that this fund's secret sauce was a 7 sheet excel workbook?

    >Yeah…. about that 2 & 20

  5. Posted by 1st Yr Stats | March 12, 2014 at 9:52 PM

    Two Sigma? Really? If they can raise money with that name, I would like to introduce you to my new fund, 80% Confidence Interval Investments.

    80CII: 60% of the time, our strategies work every time.

  6. Posted by Guest | March 12, 2014 at 11:15 PM

    Hm, I'm thinking if i take long position with my cash, and if I also short something like maybe about one third size of my long position, but then I would put the cash proceeds from that short position and buy myself more long positions. Shoot, I think I am onto something here.

    - Enthusiast Investor in Romania.