Fifteen defendants, including an attorney who was employed at multiple prominent law firms, entered not guilty pleas Monday in federal court to charges stemming from an alleged decade-long insider trading conspiracy involving confidential merger information.
Nicolo Nourafchan, whose employment history includes positions at Sidley Austin, Latham & Watkins and Goodwin Procter, was among those appearing in Boston federal court to formally deny securities fraud and related charges.
Federal prosecutors have brought charges against 30 individuals total in connection with the alleged conspiracy, which authorities claim generated tens of millions in illegal profits and was led by Nourafchan alongside personal injury lawyer Robert Yadgarov.
Yadgarov also denied the charges against him, as did Lorenzo Nourafchan, Nicolo’s brother who established a fractional CFO and accounting business. The judge noted a potential conflict of interest exists because Lorenzo is funding his brother’s legal representation.
“You may have different interests as this goes on,” U.S. Magistrate Judge Judith Dein cautioned.
Martin Weinberg, representing Nicolo Nourafchan, issued a statement saying his client “asserted his innocence to each allegation at his arraignment today and we intend a vigorous and compelling defense.”
Federal authorities allege the conspiracy commenced in 2014 shortly after Nicolo Nourafchan completed his studies at Yale Law School and began working at Sidley Austin.
According to prosecutors, Nourafchan used his positions at Sidley and subsequent firms to provide Yadgarov and others with advance notice of pending corporate deals in return for payments from trading profits.
The alleged scheme also involved recruiting additional attorneys to supply confidential information, including one lawyer from Wachtell, Lipton, Rosen & Katz and another who held positions at Weil, Gotshal & Manges and Willkie Farr & Gallagher.
Gabriel Gershowitz, the latter attorney, entered a guilty plea in secret last year and is now assisting prosecutors. Eight additional guilty pleas from 2024 were made public when authorities announced the case on May 6.
Court documents indicate many defendants are Jewish and allegedly used coded language related to their heritage when discussing merger information, with one transaction referred to as a “flight to Israel” and another called a “rabbi.”
Joseph Suskind, a Florida-based insurance adjuster, faces charges for allegedly trading in 2022 based on confidential information about SailPoint’s acquisition by Thoma Bravo and iRobot’s subsequently canceled deal with Amazon.com Inc. His attorney Michael Kendall maintains his client’s innocence.
“Evidence is more important than press releases,” Kendall stated to reporters following Suskind’s court appearance. “We look forward to the trial.”
