Goldman Sachs Gets To Decide Which VPs Are Real VPs And Which Get To Pay Their Own Legal Bills

Sorry, Sergey.
By Paul Elledge Photography [CC BY-SA 3.0], via Wikimedia Commons

via Wikimedia Commons

Remember Sergey Aleynikov? The former Goldman Sachs programmer whose life was ruined by federal and state prosecutors for nothing at the behest of one Goldman Sachs for committing the alleged crime of violating Goldman Sachs policy? Guy who spent his entire life savings defending himself against those allegations of what proved not to be actually a crime? Yea, he’s still on the hook for those legal fees, after the Delaware Chancery Court ruled that Goldman can arbitrarily decide which vice presidents are corporate officers and which vice presidents are just getting a patronizing pat on the head.

Aleynikov, 46, claimed that his former employer is obligated to pay his legal fees because, as a VP, he was an officer.

But Delaware Chancery Court Judge Travis Laster ruled instead that VPs at Goldman don’t clear that bar.

So, to review: Fabulous Fabrice Tourre, former GS VP who unsuccessfully sought to cover both his and Goldman’s ass even after the bank had given up? Corporate officer. Aleynikov, former GS VP and taker of souvenir copy of bank’s high-frequency trading code with which he probably couldn’t do much? Not. So he’ll have to hope that some civil servants have the kind of scratch needed to pay off a seven-figure legal bill.

Ex-Goldman VP loses suit against bank over $7M in legal fees [N.Y. Post]