Jay Clayton, U.S. Attorney for the Southern District of New York | Department of Justice
A federal indictment was announced today against Jian Wu, a former employee of a New York-based quantitative investment management firm. The charges allege that Wu engaged in securities and wire fraud by manipulating algorithmic trading models to increase his own compensation.
U.S. Attorney for the Southern District of New York, Jay Clayton, stated: “As alleged, Jian Wu deceived his employer, a quantitative trading firm, into paying him millions of dollars of unearned compensation. Wu’s employer trusted him to act with integrity when creating models for the firm’s use. Instead, Wu used his technical abilities to cheat his employer out of millions. This Office will continue to work closely with our law enforcement partners to investigate, detect, and prosecute fraud in the securities markets wherever we find it.”
FBI Assistant Director in Charge Christopher G. Raia commented: “Jian Wu allegedly abused his position to manipulate data models, which resulted in an undeserved multimillion-dollar award for his unlawful actions. In doing so, Wu betrayed the trust of his employer who relied on his expertise. The FBI continues its steadfast promise to hold accountable those who seek to exploit their positions to generate illicit compensation.”
According to the indictment filed in Manhattan federal court, Wu worked as a modeler at the investment management firm between 2021 and 2023. He was responsible for designing price forecasting models used by the firm's investment vehicles and funds. Authorities allege that after developing these models and securing approval for their use, Wu secretly altered key parameters post-release and tested them on misleading data sets. These changes reportedly misrepresented model performance and led the firm to award him approximately $23 million in inflated year-end compensation.
Investigators say that some of this money was used by Wu to purchase a high-value apartment in Manhattan. When the scheme came under scrutiny by his employer in 2024, he allegedly made further unauthorized changes to conceal previous tampering before being terminated from his position.
Wu is currently considered a fugitive. He faces one count each of wire fraud, securities fraud, and money laundering; each charge carries a maximum sentence of 20 years if convicted.
The prosecution is being handled by Assistant U.S. Attorneys Alexander Li and Alexandra Rothman from the Securities and Commodities Fraud Task Force at the U.S. Attorney’s Office for the Southern District of New York.
Jay Clayton acknowledged both the FBI's investigative efforts and assistance from the U.S. Securities and Exchange Commission (SEC), which has initiated separate civil proceedings against Wu.
All allegations contained within the indictment remain unproven until tested in court.
