SEC Sues 21 Individuals for Decade-Long Cross-Border Insider Trading Scheme Generating Millions in Illegal Profits

According to the SEC statement released on May 7, the U.S. Securities and Exchange Commission sued 21 individuals for participating in a cross-border insider trading scheme spanning from 2018 to 2024 that generated millions of dollars in illegal profits. The scheme allegedly involved the theft of major nonpublic information from over 12 corporate mergers and acquisitions.

Los Angeles M&A attorney Nicolo Nourafchan and his partner Robert Yadgarov organized and operated the network, authorities said. Nourafchan allegedly stole material nonpublic information from his law firm's clients and leaked it to other participants, who then profited from trades and returned a portion of the proceeds. The two also recruited another corporate attorney to obtain and distribute additional M&A inside information. The Massachusetts U.S. Attorney's Office has filed criminal charges against all defendants, with assistance from the FBI, UK's FCA, and Switzerland's FINMA.