Ex-Goldman programmer out on bail in theft case

By Martha Graybow

NEW YORK (Reuters) - A former Goldman Sachs Group Inc computer programmer accused of stealing secret trading codes from the financial firm has been released from federal custody after posting bail, authorities said on Monday.

Sergey Aleynikov, 39, was arrested by the FBI on Friday and charged with "theft of trade secrets." He met the terms of his $750,000 bail and was released Monday, said FBI spokesman James Margolin.

Aleynikov is accused of misusing computer codes that belong to his former employer, a New York-based financial institution that authorities did not identify in court papers but sources say is Goldman Sachs.

A transcript of Aleynikov's appearance before U.S. Magistrate Kevin Nathaniel Fox in Manhattan on Saturday also shows that Aleynikov worked for Goldman.

His lawyer, Sabrina Shroff, said at that proceeding that Aleynikov told authorities after his arrest that he did not intend to sell the information or use it "contrary to my employment agreement with Goldman Sachs."

Goldman has not seen its business or clients harmed by the purported computer breach, a source familiar with the situation said on Monday. The firm declined to comment.

The case could shed light on the workings of intricate trading systems developed by Goldman. It also raises questions about the security of lucrative Wall Street proprietary trading operations.

However, the New York Stock Exchange said on Monday there was no connection between the alleged security breach and an error that dropped Goldman from a trading report the NYSE issued last week.