The Securities and Exchange Commission announced that it has charged 21 individuals with involvement in a long-running insider trading scheme.
The defendants are accused of using information misappropriated from multiple global law firms to reap millions of dollars in illicit profits.
The SEC’s complaint alleges that 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, New York.
The SEC alleges that Nourafchan misappropriated material nonpublic information from his firm’s clients pertaining to more than 12 pending corporate transactions. It was further alleged 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.
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,” said Joseph G. Sansone, Chief of the Division of Enforcement’s Market Abuse Unit.
The SEC’s complaint was brought by the Division of Enforcement’s Market Abuse Unit and filed in the U.S. District Court for the District of Massachusetts. The defendants are charged with violating the antifraud provisions of the federal securities laws and seeks injunctive relief, disgorgement with prejudgment interest, and civil penalties.
In a parallel action, the U.S. Attorney’s Office for the District of Massachusetts announced criminal charges against all of the defendants in the case.
Hyman Cotter routinely represents investors harmed when financial professionals and their firms engaged in misconduct that caused their clients investment losses. Our team includes lawyers who have worked for large financial institutions, including Morgan Stanley and UBS Financial Services, and regulatory bodies such as the SEC. If you think your financial professional or firm engaged in misconduct that caused you investment losses, contact Hyman Cotter at (833) 665-0784 or through our online contact form for a no-cost evaluation of your matter.
