DoubleLine Capital executive Cris Santa Ana testified that likenesses were to be expected between the firm's proprietary system for analyzing mortgage bonds and the approach used at TCW Group, where he formerly worked.
Mr. Santa Ana, an ex-managing director at TCW's mortgage-backed securities group, told jurors Thursday in California Superior Court in Los Angeles that DoubleLine's analytical system was designed by some of the same people who built TCW's system and went over to DoubleLine in December 2009.
“They should be similar,” Mr. Santa Ana said under questioning by TCW's lawyer, John Quinn.
TCW alleges that DoubleLine was set up with proprietary information and trade secrets stolen by its ex-investment chief, Jeffrey Gundlach, along with Mr. Santa Ana and two others.
The DoubleLine defendants haven't denied downloading TCW data, including client portfolio information, starting in September 2009. They deny having used any of this information when they started DoubleLine in December of that year, after TCW fired them. They say TCW terminated them to avoid paying Gundlach's group hundreds of millions of dollars in performance fees.
Mr. Santa Ana testified that he downloaded TCW data at Mr. Gundlach's request before they were fired. Co-defendant Jeffrey Mayberry, another executive who left TCW for DoubleLine, previously testified that he started downloading TCW information, including a mortgage-backed securities database and client portfolio holdings, on Sept. 3, 2009. He said that was when people in Mr. Gundlach's unit thought TCW CEO Marc Stern was about to fire Mr. Gundlach.