By Jonathan Stempel

NEW YORK (Reuters) -A former quantitative researcher at Two Sigma Investments has been indicted for fraud, after allegedly manipulating the large hedge fund’s algorithmic models to generate a $23.5 million payday for himself while causing $165 million of harm to clients, U.S. authorities said on Thursday.

The U.S. Department of Justice said Jian Wu was indicted on wire fraud, securities fraud and money laundering charges.

Wu, 34, a Chinese citizen who has lived in New York, also faces related U.S. Securities and Exchange Commission civil charges, that regulator said.

Prosecutors said Wu is a fugitive. A lawyer for him could not immediately be identified. Two Sigma declined to comment. It fired Wu in 2024, ending six years of employment, and repaid clients for losses

See Full Page