Federal prosecutors in Boston unsealed charges on May 6, 2026, against 30 individuals accused of participating in a decade-long insider trading scheme in which attorneys at major corporate law firms leaked confidential merger and acquisition information to a network of traders operating across multiple countries [1]. Nineteen defendants were arrested the same day [1]. Nine others had already entered guilty pleas in previously sealed proceedings [2]. The Securities and Exchange Commission simultaneously filed a related civil complaint against 21 of the individuals named in the criminal action [3].
The central figure in the indictment is Nicolo Nourafchan, a Yale Law School graduate who held associate positions at Sidley Austin, Latham & Watkins, and Goodwin Procter [1]. Prosecutors allege that Nourafchan and co-defendants Robert Yadgarov and Gabriel Gershowitz, among others, misappropriated material nonpublic information about pending mergers and passed those tips through the network before public announcements [2]. Other law firms identified in the charging documents include Weil Gotshal & Manges, DLA Piper, and Willkie Farr & Gallagher [1][2]. The scheme allegedly generated tens of millions of dollars in illicit trading profits over approximately ten years [1]. The criminal charges rest on securities fraud statutes and the misappropriation theory of insider trading liability, under which individuals who owe a duty of confidentiality to an information source can be prosecuted for trading on, or tipping, that information [2].
The DOJ's investigation was conducted with the FBI and coordinated with the SEC's parallel civil enforcement action [3]. The SEC's complaint, filed in federal court, names 21 individuals and seeks disgorgement of profits, civil penalties, and injunctive relief [3]. The civil and criminal tracks proceeding simultaneously is standard posture in large-scale securities fraud matters and typically creates pressure on defendants to resolve one or both actions. Nine defendants who have already pleaded guilty are expected to be available as cooperating witnesses, a factor that historically accelerates plea negotiations among remaining co-defendants [2].
Arraignments for the 19 arrested defendants are expected in the District of Massachusetts. Defense counsel for several defendants have not yet entered public appearances on the docket. The scale of the alleged conspiracy, spanning a decade, multiple elite law firms, and international trading activity, makes this one of the more expansive insider trading prosecutions involving credentialed legal professionals in recent memory [1][2]. The SEC's parallel civil action will proceed on its own schedule, with preliminary injunction motions a likely near-term step if any defendants are believed to retain traceable assets [3].