BigLaw Attorney at Center of Alleged Decade-Long Insider Trading Ring
A former BigLaw attorney allegedly led a decade-long insider trading scheme using M&A deal secrets.
Why it matters: The scandal exposes vulnerabilities in the safeguarding of confidential information at major law firms and highlights ethical risks and compliance gaps that can impact both firm reputation and client trust.
- The SEC charged 21 and federal prosecutors charged 30 individuals in the scheme.
- M&A attorney Nicolo Nourafchan and partner Robert Yadgarov allegedly orchestrated the operation.
- Deal secrets from firms such as Goodwin Procter, Latham & Watkins, and Wachtell were misused.
- Prosecutors say nearly 30 major corporate transactions were targeted between 2018 and 2024.
The SEC has charged 21 people for their roles in an alleged decade-long insider trading ring led by Nicolo Nourafchan, a Los Angeles-based mergers and acquisitions attorney. Federal prosecutors brought charges against 30 individuals in total, detailing an operation that exploited confidential M&A information misappropriated from major global law firms, including Goodwin Procter, Latham & Watkins, and Wachtell, Lipton, Rosen & Katz.
- Authorities allege Nourafchan and Robert Yadgarov of Long Beach, NY, stole and disseminated material nonpublic information about at least a dozen pending corporate deals, with participants kicking back portions of illicit trading profits.
- The ring allegedly targeted nearly 30 significant M&A transactions from 2018 to 2024, such as Cigna’s $54B acquisition of Express Scripts, Johnson & Johnson’s $30B takeover of Actelion, and Amazon’s failed $1.4B bid for iRobot.
- Prosecutors say the network used burner phones, encrypted apps, coded language, shell companies, and foreign accounts to evade detection.
“Our country's financial markets and professional firms should be free from the rampant fraud and breaches of duty that these charges allege,” said U.S. Attorney Leah Foley. She also underscored, “The trading on unannounced financial news alleged here not only violated the securities laws, but it also took advantage of the special access and ethical duties that come with a law license.”
Reputation and compliance risks loom large for the implicated firms. The scandal puts a spotlight on BigLaw practices to protect client secrets and spot insider threats—core challenges for legal ops and firm leadership.
- Nineteen were arrested; two alleged conspirators are fugitives in Russia and Israel.
The SEC has emphasized its “unwavering commitment to uncovering sprawling schemes… and holding individuals up and down the tipping chain accountable,” according to Joseph Sansone, Chief of Enforcement's Market Abuse Unit.
By the numbers:
- 21 — individuals charged by the SEC
- 30 — individuals charged federally
- $54B — Cigna’s acquisition of Express Scripts, one target of the scheme