Does Goldman Sachs do due diligence?

I’m commenting again on something Matthew Goldstein posted a couple of days ago. Apparently, Sergey Aleynikov (aka Serge Aleynikov), an IT professional and former employee for Goldman Sachs, stole the company’s trading software to sell to a foreign company. Take a look at Goldstein’s posts here and here and Zero Hedge’s post here for the details.

SERGE IS PROBABLY SERGEY

Goldstein says he found Serge Aleynikov  “on the social networking site LinkedIn (the difference in spelling of the first name could not be immediately explained).”

It seems pretty likely that the Serge Aleynikov Goldstein that is found on LinkedIn and the one charged by the government are one and the same.

1. The ages match up. The Sergey Aleynikov in that was in Bureau of Prison’s custody is 39 years of age (for those interested, he is currently housed at the Brooklyn Metropolitan Detention Center). The Serge Aleynikov on LinkedIn started his associate of applied mathematics at the Moscow Institute of Transportation Engineering (MIIT) in 1987. This would put him at around 17 when he started this degree. A website run by an Israeli programmer John Neystadt lists Sergey Aleynikov as graduating from MIIT in 1992 along with photos that look to be the same person from the LinkedIn page.

2. Company records and lawsuit filings indicate that Sergey and Serge are the same person. LinkedIn lists Serge Aleynikov as the President and Senior Technical Director at Orbit Communications and Networking Dimension from 1996-98. In 1997, Merv Griffin Productions sued Networking Dimension Corporation, along with Sergey Aleynikov, Vadim Resyev, Leonid Ivanutenko and CIS Development Foundation Inc. in US District Court, Central District of California (civil case number 97-cv-08408-AAH-RC) for trademark infringement.

Networking Dimension was a New Jersey corporation from 1995 until it was suspended in 1998. In New Jersey corporate records, the company’s incorporator is listed as Alexsandr Bondarev (sic) and its agent as Serge Aleynikov. Alexander Bondarev is listed as the Chairman of the Board for CIS Development Foundation. I have not seen the original complaint, but according to The Pitch, the lawsuit claims that Networking Dimension operated an infringing online version of Wheel of Fortune at www.fortune-wheel.com. According to The Pitch, the registered domain owner was CIS Development Foundation. The Pitch notes, “The defendants made no effort to defend themselves, failed to appear in court, and in January 1998 were permanently enjoined from further infringement of the Wheel of Fortune copyright.”

SERGE’S TENUOUS CONNECTION TO FRAUD

The Pitch also claims, in a further twist, that CIS (where Serge worked which was sued along with Serge’s company in the Wheel of Fortune case and whose chairman was the incorporator for Serge’s company) is connected to Express Shipping Service, which was named as an organized crime front in an alcohol smuggling case both here and here. Express Shipping Service, Inc. of New Jersey was registered as a corporation in 1993-2005. Its mailing address was listed at the same building as Networking Dimension (Serge’s company), though Networking Dimension also listed a suite number. Its incorporation paper work lists its president as Mikhail Dyakovetsky. In a Federal Registrar report for 1997 (www.gpo.gov/fdsys/pkg/FR-1997-11-19/pdf/97-30404.pdf), Leonid Ivanutenko was listed as an officer (remember, he was also sued in the Wheel of Fortune case). A Mikhail Dyakovetsky was charged with conspiracy to defraud the United States and obstruction of justice. The case was filed in US District Court for New Jersey (case number 01-cr-00350-WHW-1). Dyakovetsky is now deceased. A Leonid Ivanutenko was also charged with conspiracy to defraud the United States during the same time period as Dyakovetsky. His case was also filed in US District Court for New Jersey (case number 00-cr-00259-WHW-1). Both plead guilty, and Dyakovetsky’s case was eventually dismissed because of his death while Ivanutenko received probation.

I’d be curious to know if Goldman Sachs knew anything about this (potentially tenuous) connection to dubious activities. At the very least did they look into it at all?

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s