20 August 2017
visit www.avoka.com

Citadel sues ex-staff for contract breach; raises code-theft spectre

10 July 2009  |  6106 views  |  0 STOP

Citadel Investment Group is suing three former employees who set up Teza Technologies, the firm that became embroiled in the Goldman Sachs code theft case this week, for violating a non-compete agreement.

Citadel has filed a complaint in Illinois state court, suing Mikhail Malyshev, former head of its high-frequency trading business, and two of his colleagues at the firm, Jace Kohlmeier and Matthew Hinerfeld.

Citadel says that by starting Teza, the three violated a nine month non-compete clause. According to court papers, Malyshev was being paid $30,000 a month to sit out the period to November.

The hedge fund is seeking a court order to stop the men conducting any business through Teza that competes with Citadel until the non-compete agreements expire.

Citadel says it only learned about the existence of Malyshev's new firm this week after it emerged that Sergey Aleynikov, the man accused of stealing proprietary trading code from former employer Goldman Sachs, had been hired by Teza.

The complaint says: "Teza's decision to hire Aleynikov, an accused software thief, creates a substantial risk that they have stolen, or may be planning to steal, Citadel's proprietary code."

Teza says the three men have abided by the non-compete agreement and claims the Citadel suite is "frivolous" and appears to be designed to "harass" executives. The company insists it had no knowledge of the alleged theft of Goldman software until Aleynikov's arrest and has since been working with the FBI.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

FBI nabs programmer accused of stealing trading code

FBI nabs programmer accused of stealing trading code

06 July 2009  |  12008 views  |  3 comments

Related company news

 

Related company information

Goldman Sachs

Related blogs

Create a blog about this story (membership required)
download the paper nowvisit www.dorsum.euvisit www.worldpaymentsreport.com

Top topics

Most viewed Most shared
Mobile contactless spending accelerating in UKMobile contactless spending accelerating i...
9801 views comments | 23 tweets | 23 linkedin
Norwegian banks and startups form fintech clusterNorwegian banks and startups form fintech...
8313 views comments | 19 tweets | 23 linkedin
RBS to bring Silicon Valley to EdinburghRBS to bring Silicon Valley to Edinburgh
7879 views comments | 10 tweets | 7 linkedin
hands typing furiouslyWhy Is Risk Analytics Important?
7646 views 0 | 2 tweets | 1 linkedin
Barclays pairs banking data with third party apps for SmartBusiness DashboardBarclays pairs banking data with third par...
7126 views comments | 14 tweets | 13 linkedin

Featured job

Competitive base and bonus, plus benefits
London, UK

Find your next job