The Securities and Exchange Commission (SEC) charged 21 individuals for their alleged involvement in an insider trading scheme.
The individuals are alleged to have used information misappropriated from multiple global law firms, resulting in millions of dollars in illicit profits, according to the SEC.
Between 2018 and 2024, Nicolo Nourafchan, a mergers and acquisitions attorney based in Los Angeles, orchestrated a global scheme with his partner Robert Yadgarov, of Long Beach, NY, according to the SEC. The complaint alleges that Nourafchan misappropriated material nonpublic information from his firm’s clients pertaining to more than twelve pending corporate transactions. Further, the complaint alleges that he or Yadgarov tipped that information to other scheme participants who agreed to kick back a portion of their trading profits, or who, in turn, tipped others who traded.
In addition, Nourafchan and Yadgarov allegedly recruited an additional corporate lawyer who also misappropriated material nonpublic information about additional deals and tipped that information to Nourafchan and Yadgarov.
“Today’s action highlights the SEC’s unwavering commitment to uncovering sprawling schemes, like the one alleged here, and holding individuals up and down the tipping chain accountable for their fraudulent conduct,” Joseph Sansone, chief of the Division of Enforcement’s Market Abuse Unit, said.
The defendants are charged with violating the anti-fraud provisions of the federal securities laws. The SEC is seeking injunctive relief, disgorgement with prejudgment interest, and civil penalties.
The SEC’s complaint was filed in the U.S. District Court for the District of Massachusetts.
In a parallel action, the U.S. Attorney’s Office for the District of Massachusetts announced criminal charges against all of the defendants in this case.
The SEC was assisted by the U.S. Attorney’s Office for the District of Massachusetts, the FBI, the Financial Industry Regulatory Authority, the Danish Financial Supervisory Authority, the United Kingdom Financial Conduct Authority, the Cyprus Securities and Exchange Commission, the Mauritius Financial Services Commission, and the Swiss Financial Market Supervisory Authority.