Accused Computer Software Thief Slammed with $1 Million Bail

By KIRAN SURY

Bail was raised to $1 million Tuesday in the criminal trial of a Chinese hedge fund analyst charged with using computer software to steal trade secrets.

Two Sigma Investments analyst Kang Gao allegedly used special software to obtain access to investment algorithms and trade strategies, and then used them to start his own company with Chinese partners.

The Manhattan DA’s office cited emails and visits to China as evidence that Gao intended to start his own business in China with the stolen trade secrets, and said the value of the scientific material was “unquantifiable.”

Defense attorney Derrelle Janey accused Two Sigma of “using the District Attorney as a collection agency,” and said that Gao had strong ties to the U.S. He said that Gao never shared the forbidden files, and characterized the case as a breach of contract that should be settled in civil court.

“Merely looking is not a crime,” he added.

Janey also pointed out that Two Sigma knew about Gao’s transgression and initially did not fire or otherwise discipline him.  Two Sigma only contacted the DA, he said, after they learned that Gao had accepted an employment offer from Citadel, a rival firm.

“This case is grossly overblown by the DA,” said Janey after the hearing. “They are raising the specter of the cold war when the facts prove that this is simply the dispute between a very wealthy hedge fund that wants to punish one of their prize employees.”