SEC v. Wu

Jian Wu allegedly orchestrated a scheme to deceive his former employer, Two Sigma Investments, LP and its affiliate, Two Sigma Advisers, LP, and reap millions of dollars in ill-gotten compensation by manipulating computer-based algorithmic investment models that Two Sigma used to make investment decisions for clients. According to the SEC’s complaint, Wu secretly manipulated at least fourteen investment models that he created or helped create, which Two Sigma used to predict the future performance of securities. Wu’s unauthorized changes allegedly caused Two Sigma to buy and sell securities for its clients in amounts, concentrations, and frequencies that differed from Two Sigma’s intended strategies, and caused at least 165 million in harm to certain clients, which Two Sigma subsequently repaid. According to the complaint, Wu obtained millions of dollars of ill-gotten gains in incentive compensation as a result of his fraud.

Summary generated from official Securities and Exchange Commission press release