30 Defendants Charged in Alleged Decade-Long Insider Trading Scheme Involving Law Firm Databases

Federal prosecutors unsealed two indictments Wednesday in Boston federal court charging 30 defendants in what they described as a sophisticated insider-trading ring that operated from around 2014 through 2024. The network allegedly netted tens of millions of dollars in ill-gotten profits by trading ahead of major corporate acquisitions.

Nineteen alleged participants were arrested in New York, Florida and California while two others based in Russia and Israel remain fugitives.

Nicolo Nourafchan, 43, a former mergers-and-acquisitions attorney at Goodwin and Latham, was accused of raiding confidential law-firm databases for secret deal documents tied to at least two dozen corporate transactions. He allegedly searched databases for deals he was not working on and viewed files in “preview or read-only mode” to avoid leaving digital traces, according to the Securities and Exchange Commission.

com, Enstar Group, iRobot, KnowBe4, Qualcomm, SailPoint and Tim Hortons.

The ring used an elaborate set of code words to conceal its activity. ” Code words “rabbi,” “doctor” and “surgery” referred to specific deals. ” Gavryel Silverstein, 43, replied, “He’s stable,” according to prosecutors.

The coded language extended to payments. ” while discussing an upcoming deal. He also allegedly texted “Time to take the money and run” after a successful merger announcement. In another message he wrote, “The flight attendant called me.

The scheme focused on some of the largest deals of the past decade. Occidental Petroleum’s acquisition of Anadarko Petroleum was roughly $55 billion. Burger King’s takeover of Tim Hortons was approximately $11 billion.

The ring relied on burner phones, encrypted messaging apps, offshore accounts, shell companies and in-person meetings where participants were instructed to turn off phones and wearable electronics. Conspirators routed money through foreign shell entities, disguised kickbacks as “business loans,” moved funds through relatives and associates and frequently used cash payments.

Some traders used brokerage accounts held in the names of family members, corporate entities and offshore companies in Switzerland, Panama and the British Virgin Islands.

Several defendants allegedly lied to the FBI, attempted to obstruct the probe and urged witnesses not to cooperate with investigators. ” The spokesperson added, “There are no allegations of wrongdoing against the firm. ” Goodwin and Latham told Bloomberg News they are deeply disappointed that a former employee is alleged to have violated the trust placed in him and misused confidential information as part of a broader criminal scheme affecting multiple law firms and their clients.

Goodwin and Latham stated they have been cooperating and continue to cooperate fully with law enforcement. New York Post reported that the indictments do not name the law firms Nourafchan and Yadgarov allegedly targeted, but transaction details and employment histories pointed to Wachtell Lipton, Rosen & Katz, Latham & Watkins and Goodwin Procter among those whose confidential databases were accessed.