Full Breakdown
Federal Authorities Charge 30 in Decade-Long Insider-Trading Ring Tied to Elite Law Firms
5/8/2026, 10:13:06 PM
Insider Trading Scheme Unveiled
On May 7 2026 federal prosecutors in Boston announced indictments against thirty individuals—among them attorneys from Willkie Farr & Gallagher, Weil Gotshal, DLA Piper and other top firms—for allegedly using confidential merger-and-acquisition information to generate tens of millions of illegal profits.
Background & Key Players
The operation is alleged to have been orchestrated by Yale-educated corporate lawyer Nicolo Nourafchan—formerly of Sidley Austin, Latham & Watkins, Goodwin Procter and Cleary Gottlieb—and personal-injury attorney Robert Yadgarov, who recruited other lawyers such as Gabriel Gershowitz to supply non-public deal data.
Timeline of the Alleged Scheme
2013: Nourafchan joins Sidley; 2014: tip from Wachtell lawyer; 2018: Gershowitz recruited; 2019: Ardagh-Exal tip; 2022: iRobot info; 2024: Enstar tip; Feb 2025: Gershowitz guilty plea; May 7 2026: indictment.
Scope and Numbers
The indictment names thirty defendants, nineteen arrested. Thirty M&A deals—including Amazon-iRobot, Cigna-Express Scripts and Johnson & Johnson-Actelion—were targeted, yielding millions. Gershowitz forfeits $37,000; nine have pleaded guilty; six victim firms stay unnamed.
Why It Matters
The case shows how privileged legal access can be weaponized, eroding market integrity and public confidence in the legal profession, and prompting stricter compliance and possible regulatory reforms.
Official Statements & Responses
Leah Foley said the conduct exploited lawyers’ access. FBI Agent Ted Docks called the arrests a dismantling of a decade-long criminal network. Willkie, Latham & Watkins and Goodwin said they are cooperating and condemned the violations.
Criticism & Opposition
Latham & Watkins and Goodwin expressed disappointment, saying the alleged conduct would breach robust compliance policies and damage client trust.
Conflicting Reports & Gaps
Sources vary on the deal count (“nearly 30” vs. “about 30”) and start year (2013 vs. 2014). Victim firms are unnamed and profit totals are vague.
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, District of Massachusetts
- “Anyone who engages in insider trading fundamentally undermines the trust necessary for our financial markets to function, and the FBI is committed to ensuring that those markets are a level playing field, not just profiting those with friends in the know.” — Ted Docks, Special Agent in Charge, FBI Boston Division
- “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 Procter spokesperson
- “I really need to know when the rabbi is scheduled for surgery” — Simon Fensterszaub, alleged conspirator
What’s Next
Prosecutors recommend a two-year prison term for Gershowitz; sentencing is pending. Remaining defendants face court dates in California, Florida and New York, with further pleas possible.
