Fifteen individuals appeared in federal court on Monday and entered not guilty pleas to charges that they took part in an alleged insider trading scheme spanning roughly a decade, prosecutors said. The case centers on accusations that attorneys provided confidential information about nearly 30 pending mergers to a trading network, yielding substantial illicit profits.
Among those arraigned was Nicolo Nourafchan, a lawyer who has worked at Sidley Austin, Latham & Watkins and Goodwin Procter. Nourafchan is identified by prosecutors as one of the central figures in what they describe as a coordinated effort to tip traders about upcoming corporate transactions.
Prosecutors say the broader conspiracy involved 30 individuals in total and produced tens of millions of dollars in trading profits. They allege the operation was run by Nourafchan along with personal injury attorney Robert Yadgarov, who also entered a not guilty plea at the Boston proceeding.
The arraignment also included Lorenzo Nourafchan, Nicolo’s brother, who founded a fractional CFO and accounting firm. Court filings indicate Lorenzo is covering Nicolo Nourafchan’s legal fees through an arrangement that prompted U.S. Magistrate Judge Judith Dein to warn of a potential conflict. "You may have different interests as this goes on," the judge told the courtroom.
Authorities trace the alleged scheme back to 2014, shortly after Nicolo Nourafchan graduated from Yale Law School and took a position at Sidley Austin. Prosecutors contend that while employed at Sidley and at other firms, Nourafchan supplied Yadgarov and additional participants with tips about undisclosed corporate deals. In return, prosecutors say, Nourafchan received kickbacks tied to the profits from trades executed on that inside information.
The indictment describes recruitment of other lawyers into the operation, naming at least one attorney who worked at Wachtell, Lipton, Rosen & Katz and another who had roles at Weil, Gotshal & Manges and Willkie Farr & Gallagher. Gabriel Gershowitz, identified in court papers as the latter attorney, secretly pleaded guilty last year and is serving as a cooperating witness for prosecutors.
Federal filings also show that guilty pleas from eight additional individuals, entered as far back as 2024, were unsealed on May 6 when prosecutors publicly announced the broader case.
The indictment includes descriptions of coded language allegedly used by some defendants to discuss merger tips in a way tied to their personal backgrounds. Prosecutors say those exchanges included references characterized as a "flight to Israel" and a "rabbi." The complaint does not alter the charges; it notes that many of the defendants are Jewish and reports the alleged use of such coded messages.
One defendant named in the indictment is Joseph Suskind, a Florida resident who works in insurance adjusting. He is charged with trading in 2022 on tips about SailPoint’s agreement to be acquired by Thoma Bravo and on tips regarding iRobot’s later-abandoned deal to be bought by Amazon.com Inc.
Suskind’s defense attorney, Michael Kendall, spoke to reporters after the arraignment, denying the charges. "Evidence is more important than press releases," Kendall said, adding, "We look forward to the trial."
The case remains under active criminal investigation. Prosecutors have framed it as a lengthy, organized operation involving legal professionals and outside traders. Several participants have already pleaded guilty and are cooperating, while others continue to contest the allegations in court.