Full Breakdown
Boston Court Sees Mass Pleas in Decade-Long M&A Insider Trading Scheme
6/2/2026, 9:15:59 PM
Mass Not-Guilty Pleas in Insider Trading Case
On June 1, 2026, fifteen defendants—including lawyer Nicolo Nourafchan and attorney Robert Yadgarov—entered not-guilty pleas in Boston federal court. Prosecutors say the group ran a decade-long insider-trading ring that supplied tips on thirty pending mergers, earning tens of millions in profits.
Background & Context
Prosecutors trace the scheme to 2014, soon after Nourafchan graduated from Yale Law and joined Sidley Austin. He allegedly passed merger data to Yadgarov, who relayed it to traders for kickbacks. The network recruited lawyers from firms such as Latham & Watkins and Goodwin Procter.
Key Figures & Groups
Participants include Nicolo Nourafchan, the alleged ring leader; Robert Yadgarov, who coordinated the trading side and paid Nourafchan’s counsel; Lorenzo Nourafchan, his brother and CFO-firm founder; Gabriel Gershowitz, a Weil Gotshal attorney who pleaded guilty and now cooperates; and Joseph Suskind, an insurance adjuster charged with trading on SailPoint and iRobot tips.
Timeline of the Investigation
- 2014 – Scheme initiates after Nourafchan joins Sidley Austin.
- 2022 – Trades on SailPoint (Thoma Bravo) and iRobot (Amazon) tips, later charged.
- 2024 – Eight participants plead guilty; indictments released May 6, 2026.
- June 1, 2026 – Fifteen defendants, including Nourafchan and Yadgarov, plead not guilty.
Why It Matters
The case shows how privileged M&A information can be diverted to traders, challenging attorney-client privilege and conflict-of-interest rules—highlighted by Yadgarov’s payment of counsel—and raises concerns about coded cultural references used in communications.
Official Statements & Responses
Martin Weinberg, Nourafchan’s lawyer, declared his client’s innocence and promised a vigorous defense. Defense attorney Michael Kendall, representing Suskind, said evidence matters more than press releases and expressed confidence ahead of trial. Judge Judith Dein warned that Yadgarov’s payment of counsel could create conflicting interests.
Criticism & Opposition
The indictment says defendants used coded phrases like “flight to Israel” and “rabbi” when discussing merger tips, suggesting exploitation of cultural identifiers.
Conflicting Reports & Gaps
Reuters notes fifteen not-guilty pleas on June 1, while Bloomberg describes “more than a dozen” defendants pleading not guilty, creating a minor count discrepancy. The indictment’s claim of coded cultural references lacks independent verification, leaving a factual gap.
Verbatim Quotes
- “You may have different interests as this goes on,” — U.S. Magistrate Judge Judith Dein
- “Evidence is more important than press releases," Kendall told reporters after Suskind's arraignment.” — Michael Kendall, defense lawyer
- “asserted his innocence to each allegation at his arraignment today and we intend a vigorous and compelling defense.” — Martin Weinberg, attorney for Nicolo Nourafchan
- “flight to Israel” and “rabbi” — Indictment language
What’s Next
The defendants remain under indictment and are scheduled for trial in the coming months.
