On May 7, 2026, the U.S. federal prosecutors unsealed two indictments on Wednesday, May 6, accusing 30 individuals of participating in a ten-year-long multinational large-scale insider trading scheme. The group is alleged to have stolen merger and acquisition (M&A) information from several top law firms across the United States, resulting in illegal profits amounting to tens of millions of dollars.
According to the prosecutors, the defendants include corporate lawyers and finance professionals. They are accused of stealing confidential information on nearly 30 merger and acquisition cases from several top law firms, including one based in Massachusetts.
The key figures in the case are 43-year-old Los Angeles lawyer Nicolo Nourafchan and 45-year-old New York lawyer Robert Yadgarov. They are charged with recruiting other lawyers and insiders to act as “informants” and paying cash kickbacks of up to hundreds of thousands of dollars in exchange for significant material non-public information (MNPI), which was then passed on to a network of traders for profit.
Ted E. Docks, the Special Agent in Charge of the FBI’s Boston division, stated, “The FBI has dismantled an international organized crime network composed of professional lawyers and financial professionals today. These defendants exploited anticipated market fluctuations to make a fortune, not only taking advantage of loopholes in the system but also committing serious federal crimes.”
Currently, law enforcement authorities have arrested 19 of the defendants. Two defendants located in Russia and Israel are fugitives and are subjects of a manhunt. In addition, charges for securities fraud conspiracy against another 9 defendants were unsealed today, but the press release did not reveal specific names. The government stated that the investigation is ongoing.
The indictments provide a detailed description of the group’s highly sophisticated evasion methods, including the use of burner phones, encrypted communication software and codes (such as using “flight” or “medical surgery” to refer to the progress of trades), and shutting off electronic devices or placing them elsewhere during offline meetings.
Regarding money laundering pathways, the defendants utilized shell companies and overseas accounts in Panama, Switzerland, and other locations to transfer funds and disguised kickbacks as “loans” or commercial transactions.
The 30 defendants face multiple federal charges including securities fraud, money laundering, and obstruction of justice. The specific legal consequences are as follows:
Securities Fraud:
– Maximum sentence of 25 years in prison and a fine of up to $250,000 (or twice the illegal gains).
Conspiracy to Commit Securities Fraud:
– Depending on the terms, a maximum sentence ranging from 5 to 25 years of imprisonment.
Money Laundering Conspiracy:
– Maximum sentence of 20 years in prison and a fine of $500,000.
Obstruction of Justice:
– Maximum sentence of 20 years in prison and a fine of $250,000.
False Statements and Declarations:
– Making false statements to law enforcement or grand juries carries a maximum sentence of 5 years in prison.
Please note that the charges listed in the indictments are accusations only, and until proven guilty in court, all defendants are presumed innocent.