Nicholas Jarecki was born on June 25, 1979 in New York City, to Henry Jarecki and Marjorie Heidsieck. His brother is finance executive Thomas A. Jarecki and his half-brothers are fellow filmmakers Andrew Jarecki and Eugene Jarecki. His father is Jewish and his mother is from a Catholic background. At 16 he was hired as a technical consultant on the 1995 film Hackers, where his job was to consult with the actors and director about computer hacking.

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