Ex-Two Sigma Quant Charged With Fraud by Federal Prosecutors (1)

A former Two Sigma Investments quantitative researcher was charged with secretly manipulating algorithmic investment models so they appeared to be generating higher returns than they were, with the goal of inflating his own compensation by millions of dollars.

An indictment against Jian Wu, 34, was unsealed Thursday in federal court in Manhattan. While prosecutors didn’t name Wu’s former employer, a parallel suit filed by the Securities and Exchange Commission said he was employed by Two Sigma during the alleged fraud, which it said took place between November 2021 and August 2023.

“Wu’s employer trusted him to act with integrity when ...