{"id":45975,"date":"2015-01-19T08:33:23","date_gmt":"2015-01-19T13:33:23","guid":{"rendered":"http:\/\/www.hedgeco.net\/news\/?p=45975"},"modified":"2015-01-19T08:35:39","modified_gmt":"2015-01-19T13:35:39","slug":"former-citadel-employee-arrested-for-theft-of-financial-firms-trade-secrets","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/01\/2015\/former-citadel-employee-arrested-for-theft-of-financial-firms-trade-secrets.html","title":{"rendered":"Former Citadel Employee Arrested for Theft of Hedge Fund Trade Secrets"},"content":{"rendered":"<p><a href=\"http:\/\/www.hedgeco.net\/news\/wp-content\/uploads\/2015\/01\/8392684_600x338.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright  wp-image-45976\" src=\"http:\/\/www.hedgeco.net\/news\/wp-content\/uploads\/2015\/01\/8392684_600x338.jpg\" alt=\"8392684_600x338\" width=\"327\" height=\"279\" srcset=\"https:\/\/hedgeco.net\/news\/wp-content\/uploads\/2015\/01\/8392684_600x338.jpg 378w, https:\/\/hedgeco.net\/news\/wp-content\/uploads\/2015\/01\/8392684_600x338-300x256.jpg 300w\" sizes=\"auto, (max-width: 327px) 100vw, 327px\" \/><\/a>New York (HedgeCo.Net) &#8211; A young science engineer whippersnapper, Yihau\u00a0Pu, also known as &#8220;Ben&#8221; has been\u00a0sentenced to three years in federal prison, the Chicago Tribune reports.<\/p>\n<p>The prosecution said he \u201cmeticulously planned and brazenly executed\u201d the theft of sensitive trade secrets from two former employers of a trading firm in New Jersey and Citadel, LLC, a Chicago-based\u00a0hedge fund manager.<\/p>\n<p>Pu bypassed Citadel\u2019s security measures and stole thousands of files that contained Citadels\u2019 alpha outputs. Pu then used those alphas in his own high frequency trading strategy for his own personal investment account in an effort to replicate Citadel\u2019s trading for his own benefit. The Judge found that the crimes caused a total intended loss of approximately $12.2 million.<\/p>\n<p>Pu, 27, currently of Waltham, Mass., and also known as \u201cBen Pu,\u201d was ordered to begin serving his sentence on May 1, and was placed on three years of court supervision following his release from custody.<\/p>\n<p>An associate of Pu&#8217;s, Sahil &#8220;Sonny&#8221; Uppal , also a former Citadel employee, had pleaded guilty to obstructing the investigation into the theft, and he was was placed on three years\u2019 probation.<\/p>\n<p>U.S. District Judge Charles Norgle, who imposed the sentences, also ordered Pu and Uppal each to pay restitution totaling $759,649 to Citadel to cover the cost of its investigation. Both defendants pleaded guilty last August in Federal Court in Chicago.<\/p>\n<p>Alex Akesson<br \/>\nEditor for\u00a0<a title=\"hedge funds\" href=\"http:\/\/www.hedgeco.net\/\">HedgeCo.net<\/a><br \/>\n<a href=\"mailto:alex@hedgeco.net\">alex@hedgeco.net<\/a><br \/>\n<a title=\"hedge fund\" href=\"http:\/\/www.hedgeco.net\/\">HedgeCo.Net<\/a>\u00a0is a premier\u00a0<a title=\"hedge fund database\" href=\"http:\/\/www.hedgeco.net\/\">hedge fund database<\/a>\u00a0and community for qualified and accredited investors only. Membership in<a title=\"hedge fund\" href=\"http:\/\/www.hedgeco.net\/\">HedgeCo.net<\/a>\u00a0is FREE and EASY. We also offer FREE LISTINGS for\u00a0<a title=\"hedge fund\" href=\"http:\/\/www.hedgeco.net\/\">Hedge Funds<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>New York (HedgeCo.Net) &#8211; A young science engineer whippersnapper, Yihau\u00a0Pu, also known as &#8220;Ben&#8221; has been\u00a0sentenced to three years in federal prison, the Chicago Tribune reports. The prosecution said he \u201cmeticulously planned and brazenly executed\u201d the theft of sensitive trade [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11,3],"tags":[],"class_list":["post-45975","post","type-post","status-publish","format-standard","hentry","category-hedge-fund-fraud","category-hedgeco-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/45975","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=45975"}],"version-history":[{"count":4,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/45975\/revisions"}],"predecessor-version":[{"id":45980,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/45975\/revisions\/45980"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=45975"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=45975"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=45975"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}