A former DRW Holdings LLC trader and research analyst was accused in a lawsuit of stealing proprietary computer code used in the firm’s quantitative strategies.
Avi Mahajan was sued in federal court in New York on Tuesday by an entity controlled by DRW’s lead quantitative researcher, David Sweet. According to the suit, Sweet was hired by DRW after he pitched the firm on his Cogneato software, and his employment agreement allowed him to retain ownership of it.
Sweet claims Mahajan, who was hired at DRW as a quantitative analyst in 2018, copied portions of the Cogneato code to a remote site in May and then lied when confronted about it in July. According to the suit, Mahajan was fired from DRW over the incident and escorted from the firm’s New York offices on July 24.
Mahajan didn’t immediately respond to a request for comment through his LinkedIn page. Sweet is asking the court to block Mahajan from disclosing, using or possessing the code he allegedly copied as well as any derivative work. The suit is also seeking compensatory damages of more than $2.5 million.
DRW, a Chicago-based proprietary trading firm founded by Don Wilson in 1992, is known for its derivatives trading. It was also one of the early Wall Street entrants in cryptocurrency markets, and its Cumberland division is now one of the largest crypto traders.
The suit is the latest to highlight the high stakes in control of Wall Street trading code. Last week, market-making firm Virtu Financial Inc. sued to block its former client technology head from moving to prime broker Clear Street LLC, which Virtu said was aiming to compete in the market for execution services.
The case is Vanderdonk LLC v Mahajan, 23-cv-7853, US District Court, Southern District of New York.
Rajesh Markan earlier this year pleaded guilty to one count of criminal fraud related to his sale of fake investments to 10 clients totaling $2.9 million.
From building trust to steering through emotions and responding to client challenges, new advisors need human skills to shape the future of the advice industry.
"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.
Chair also praised the passage of stablecoin legislation this week.
Maridea Wealth Management's deal in Chicago, Illinois is its first after securing a strategic investment in April.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
