Three Charged With Stealing Flow Traders Trading Software
By Tiffany Kary - Aug 26, 2013 1:13 AM ET
Two men who were employed by Flow Traders were charged in New York with stealing the firm’s electronic trading software by e-mailing it to themselves from their work accounts.
Glen Cressman, a trader at the New York office of the Amsterdam-based company, sent e-mails to himself in December 2012 with trading strategies and valuation algorithms, according to the complaint in state Supreme Court in Manhattan. He is charged with two counts each of unlawful duplication of computer related material and unauthorized use of secret scientific material, according to copies of a complaint brought by the Manhattan District Attorney’s office.
Jason Vuu, a Flow Traders employee until his resignation in March, was charged with 20 counts of the same offenses. His e-mails were sent from August 2011 to August 2012, and he sometimes changed the file format of the attachments to make it difficult to recognize their contents, according to the complaint.
Vuu is accused by prosecutors of sharing the software code with Simon Lu, who wasn’t a Flow Traders employee, to create their own trading company. Lu is charged with three counts each of unlawful duplication of computer related material and unauthorized use of secret scientific material.
“I’m confident that when the DA’s office has completed their investigation they will find Flow Traders did not suffer any economic loss,” Jeremy Saland, a lawyer for Vuu, said in an e-mail yesterday. “Their algorithms and code weren’t taken or used in any malicious way that damaged or compromised their financial security.”
Charles Ross, a lawyer for Cressman, Paul Shechtman, a lawyer for Lu, and Joseph DeMarco, a lawyer for Flow Traders, didn’t immediately return phone and e-mail messages yesterday after regular business hours seeking comment on the charges.
Founded in 2004 in Amsterdam, Flow Traders, has trading offices in Singapore and New York and has specialized in-house software that responds instantly to information, trading securities, futures, options, exchange-traded-funds and commodities, bonds, and foreign exchange instruments, according to its website.
The complaints were reported earlier by the Wall Street Journal.
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