FBI Arrests 19 in Decade-Long Insider Trading Scheme Involving Coded Communications

The FBI and DOJ unsealed charges against 30 people on May 8 2026 for using Jewish code words to coordinate an insider trading scheme that netted participants tens of millions of dollars. The FBI arrested 19 of the 30 defendants the same day.

U.S. Law firms. The arrested defendants will appear in federal courts in California, Florida, New York, and other states. Two defendants are located in Russia and one in Israel; all three are considered fugitives.

The alleged scheme lasted approximately a decade and involved at least two dozen corporate transactions. Nineteen of the 30 defendants were charged with two counts of conspiracy to commit securities fraud, two counts of securities fraud, and one count of money laundering conspiracy. Nicolo Nourafchan was charged with two counts of obstruction of justice.

Three defendants were charged with making false statements to law enforcement. The conspirators used burner phones, encrypted applications, and coded communications. The group used the term "flights" to signify in-person off-the-grid meetings.

They employed the code words "rabbi," "praying," and "surgery" to refer to potential deals. " and a call asking when "Rabbi Pipestein" was coming to collect. The group used the term "learning" to suggest the passing of inside information.

The SEC filed charges against 21 individuals for violating antifraud provisions of federal securities laws. The SEC is seeking injunctive relief, disgorgement with prejudgment interest, and civil penalties. The SEC’s Market Abuse Unit’s Analysis and Detection Center detected suspicious trading patterns that led to the charges.

Com reported that Nicolo Nourafchan, 43, is a former mergers-and-acquisitions attorney at Goodwin and Latham. Ted E. Docks, special agent in charge of the FBI’s Boston Division, stated the arrests "dismantled" a large-scale, decade-long, international organized criminal network.

Joseph G. Sansone is chief of the Division of Enforcement’s Market Abuse Unit at the SEC. Joseph G.