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.
Reuters reports that 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.
Gao has pleaded not guilty.
'The protection of trade secrets, such as computer source codes and trading methods, is critical to building and maintaining financial expertise', Vance said in a statement.
Gao, 29, was hired in 2010 as a quantitative analyst for Two Sigma, prosecutors said. 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.
Gao's employment contract prohibited him from viewing the trading models, prosecutors said.
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