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DOJ Charges 30 in Alleged Law‑Firm Insider Trading Ring

The case targets alleged theft of confidential merger data by lawyers, a threat to trust in fair markets.

Overview

  • Federal prosecutors, who unsealed cases Wednesday, charged 30 people and arrested 19 in coordinated actions in Los Angeles, Fort Lauderdale, and New York.
  • Authorities say corporate attorneys, including Nicolo Nourafchan and Robert Yadgarov, pulled confidential deal files from law‑firm computer systems and fed the tips to traders for kickbacks.
  • Investigators describe burner phones, encrypted apps, coded terms, device‑free meetups, shell companies, and foreign conduits in places like Panama and Switzerland to move cash and hide trades.
  • The indictments allege conspiracy to commit securities fraud, securities fraud, and money‑laundering conspiracy, with added counts such as obstruction of justice and false statements for several defendants.
  • Court records list nearly 30 targeted mergers, including Amazon’s 2022 bid for iRobot, and point to a Massachusetts firm tied to affected deals, highlighting risks for law‑firm data security and ongoing multi‑district prosecutions.