NEW YORK – Nicolo Nourafchan, a prominent corporate attorney, was arrested and charged on Wednesday, May 13, 2026, in connection with a decade-long, global insider trading and money laundering scheme. The charges, unsealed by the U.S. Department of Justice (DOJ) and the U.S. Securities and Exchange Commission (SEC), allege that Nourafchan orchestrated a sophisticated operation that generated tens of millions of dollars in illicit profits by exploiting confidential information related to nearly 30 mergers and acquisitions (M&A) deals.
The 43-year-old Los Angeles resident, a Yale Law School graduate, is accused of leveraging his positions at top-tier ‘Biglaw’ firms to access and disseminate material non-public information (MNPI) to a network of traders and middlemen. This breaking news sends shockwaves through the legal and financial communities, highlighting significant vulnerabilities in corporate information security and compliance.
The Charges Against Nicolo Nourafchan
Nicolo Nourafchan faces a formidable array of charges, including two counts of conspiracy to commit securities fraud, two counts of securities fraud, one count of money laundering conspiracy, and two counts of obstruction of justice. These charges are part of a broader indictment that names 16 defendants, with a total of 30 individuals criminally charged in the sprawling investigation. The SEC’s parallel civil complaint further charges Nourafchan and 20 others with violating antifraud provisions of federal securities laws, seeking injunctive relief, disgorgement of ill-gotten gains with prejudgment interest, and civil penalties.
According to court documents, Nourafchan’s alleged scheme involved systematically accessing his law firms’ internal computer networks to view confidential documents related to pending M&A deals, even those he was not directly involved in. He then allegedly provided this MNPI to co-conspirators, including Robert Yadgarov, 45, of Long Beach, New York, in exchange for kickbacks often amounting to hundreds of thousands of dollars in cash.
Scale of the Crime
The alleged scheme’s scale is staggering. Prosecutors claim the operation ran from approximately 2018 to 2024, though Nourafchan’s involvement in misappropriating information from law firms reportedly dates back to 2013. The conspirators are accused of stealing and using confidential information on nearly 30 M&A deals involving public companies, generating “tens of millions of dollars” in illicit profits. The SEC complaint specifically details Nourafchan’s misappropriation of information related to more than twelve pending corporate transactions.
One notable example cited is the 2022 proposed acquisition of iRobot by Amazon, where a network of over ten individuals allegedly profited illegally by more than $1.7 million. The scheme reportedly involved a sophisticated network of traders and middlemen, including Lorenzo Nourafchan (38, of Los Angeles) and Gavryel Silverstein (43, of Hollywood, Florida), who further disseminated the MNPI to obscure the connection between the sources and the ultimate traders. To evade detection, the conspirators allegedly employed burner phones, encrypted applications, coded language, and in-person meetings with electronic devices turned off.
Who Is Nicolo Nourafchan?
Nicolo Nourafchan is a 43-year-old U.S. national and corporate attorney from Los Angeles, California. A graduate of Yale Law School, Nourafchan built a career at several highly respected ‘Biglaw’ firms between 2013 and 2023, including Sidley Austin, Latham & Watkins, Cleary Gottlieb, and Goodwin Procter. His professional background placed him at the heart of the legal world’s most sensitive corporate transactions, giving him access to the very information he is now accused of exploiting for personal gain.
Investigation Details
The extensive investigation was spearheaded by the U.S. Attorney’s Office for the District of Massachusetts and the FBI. The SEC’s parallel civil case was originated by its Market Abuse Unit’s Analysis and Detection Center, which utilized advanced data analysis tools to identify suspicious trading patterns. The global nature of the scheme necessitated broad international cooperation, with assistance provided by authorities including the Financial Industry Regulatory Authority (FINRA), the Danish Financial Supervisory Authority, the United Kingdom Financial Conduct Authority, and the Swiss Financial Market Supervisory Authority, among others.
“The alleged actions of Nicolo Nourafchan and his co-conspirators represent a profound breach of trust, not only to their firms but to the integrity of our financial markets,” stated a representative close to the investigation. “This case underscores the relentless pursuit of those who seek to profit illegally from insider information, no matter how sophisticated their methods.”
What Happens Next
Nicolo Nourafchan was among nineteen defendants arrested on May 6, 2026, with others expected to make appearances in federal courts across Los Angeles, Fort Lauderdale, and New York. While the criminal case is in its early stages, and all defendants are presumed innocent until proven guilty, the severity of the charges could lead to substantial prison sentences and hefty financial penalties if convictions are secured. Two defendants named in the complaints are currently considered fugitives in Russia and Israel, indicating the international scope and complexity of the ongoing legal proceedings.
Protecting Yourself
This case serves as a stark reminder of the persistent threat of insider trading and the critical need for robust safeguards within financial and legal institutions. The alleged vulnerabilities exploited by Nicolo Nourafchan and his network highlight several red flags:
- Weaknesses in Information Barriers: Firms must implement stringent access controls to ensure employees can only view confidential information relevant to their direct work.
- Inadequate Compliance Monitoring: Law firms and financial institutions need enhanced systems for monitoring employee access to sensitive data and for surveillance of trading activities.
- Lack of Robust Supervisory Systems: Automated surveillance tools and strong supervisory systems, as mandated by FINRA and SEC rules for broker-dealers, are essential to detect unusual trading patterns ahead of corporate events.
Clients entrusting their most sensitive deals to legal and financial advisors should inquire about the security protocols in place to protect their information. For investors, vigilance is key; sudden, unexplained trading spikes in a stock ahead of a major announcement can be a warning sign. The Financial Standard will continue to provide updates on this developing case and other related fraud investigations as new information becomes available.
