Full Breakdown
Former Law Firm Lawyers Charged in Massive Insider-Trading Scheme
5/8/2026, 2:56:39 AM
Overview of the Indictments
On May 6 2026, Boston prosecutors indicted 30 individuals—lawyers, a personal-injury attorney and traders—in an insider-trading ring that used confidential merger data from law firms. Nineteen were arrested; two remain fugitives. The scheme allegedly earned tens of millions from pending M&A deals.
Timeline
Key Participants
Nourafchan, a lawyer who worked at Sidley Austin, Latham & Watkins and Goodwin Procter (2013-2023), is alleged to have orchestrated the scheme. Yadgarov, a personal-injury attorney, partnered with him to recruit sources. Gershowitz, who moved from Weil Gotshal to DLA Piper and Willkie Farr & Gallagher, supplied tips from 2019 onward and pleaded guilty in February 2025. Latham & Watkins, Goodwin Procter and Willkie Farr & Gallagher are described as victims.
Scale and Financial Impact
The indictment cites 30 M&A deals, including Amazon’s 2022 iRobot bid and the Express Scripts acquisition. Lawyers received cash kickbacks of hundreds of thousands; Gershowitz forfeited $37,000. Prosecutors estimate the network earned tens of millions in illicit profits.
Official Responses
Law firms stressed policy violations and victim status. U.S. Attorney Leah Foley said the conduct exploited ethical duties, violating securities laws. The FBI and SEC launched actions, warning that insider trading erodes market trust.
Criticism & Opposition
Goodwin Procter was that a former employee breached trust and misused confidential data; Willkie Farr & Gallagher warned the conduct would be a severe violation of its compliance policies.
Conflicting Reports & Gaps
The indictment gives only a range (“tens of millions”) for profits, without a precise total. Victim firms are unnamed, obscuring corporate exposure. A court filing recommending Gershowitz’s sentence was removed from the docket.
Verbatim Quotes
- “The trading on unannounced financial news alleged here not only violated the securities laws, but it also took advantage of the special access and ethical duties that come with a law license.” — Leah Foley, U.S. Attorney
- “ "We are deeply disappointed that a former employee is alleged to have violated the trust placed in him and misused confidential information as part of a broader criminal scheme affecting multiple law firms and their clients," Goodwin said.” — Goodwin Procter spokesperson
- “Everyone charged today is accused of scoring significant profits from expected market moves and making out like bandits,” — Ted Docks, Special Agent in Charge, FBI Boston Division
- “Anyone who engages in insider trading fundamentally undermines the trust necessary for our financial markets to function,” — Ted Docks, FBI Boston Division
Next Steps
Gershowitz awaits sentencing on the recommended two-year term. Nourafchan, Yadgarov and defendants face arraignments in federal courts in California, Florida and New York. The SEC’s civil case proceeds, and investigators continue probing attorneys and traders who may have joined the network.
