A former attorney who worked at a prestigious Wall Street law firm before moving to an investment bank has been linked to one of the largest insider trading conspiracies prosecuted in recent years, according to sources close to the investigation.
Avi Sutton, who joined boutique investment firm LionTree in 2022, has been identified by two knowledgeable sources as the unnamed former Wachtell, Lipton, Rosen & Katz lawyer mentioned in federal charges unveiled Wednesday. The massive case involves 30 defendants in a scheme that allegedly ran for ten years and produced tens of millions in illicit gains.
While Sutton has not been formally charged and remains an unindicted co-conspirator, sources say he is the individual prosecutors refer to as “CC-2” in court documents – someone they describe as actively participating in the conspiracy. The sources requested anonymity because they were discussing non-public information.
Sutton worked as an associate at Wachtell from 2013 through 2022 before taking on roles as general counsel and chief operating officer at New York-based LionTree. He has not responded to multiple email requests seeking comment on the allegations.
LionTree, which specializes in technology, media and telecommunications transactions, had featured Sutton’s photograph and biography on its website as recently as Thursday morning. By Thursday afternoon, however, his information had been removed from the site. The company has not returned calls or emails requesting a statement.
Federal investigators did not name the firms directly in charging documents, instead referring to them as “Investment Bank A” and “Law Firm F.” Reuters identified the companies through merger transaction details described in the indictment, Sutton’s professional profile, and information provided by the two sources. Wachtell has acknowledged it was among the law firms prosecutors identified as victims of the scheme.
The renowned New York law firm, which handles hundreds of billions of dollars worth of merger transactions annually, released a statement Wednesday without naming Sutton specifically. The firm noted that the individual in question departed more than four years ago.
“There are no allegations of wrongdoing against the firm,” Wachtell stated. “Wachtell Lipton has cooperated fully with the U.S. Attorney’s office and will continue to do so.”
A representative for U.S. Attorney Leah Foley, whose office is handling the prosecution, declined to provide additional comment.
According to federal prosecutors, the elaborate conspiracy operated from 2014 through 2024, with lawyers at major firms systematically stealing and sharing confidential information about nearly 30 pending merger deals to fuel the trading scheme.
Authorities say the operation was led by Nicolo Nourafchan, a corporate attorney who held positions at Sidley Austin, Latham & Watkins and Goodwin Procter, working alongside personal injury lawyer Robert Yadgarov. Both men were among 19 individuals arrested Wednesday in connection with the case.
Eric Rosen, representing Nourafchan through the Dynamis law firm, declined to comment on the charges. Yadgarov has not responded to requests for comment. The Securities and Exchange Commission has also filed related civil charges against several defendants.
Multiple law firms implicated in the case, including Goodwin and Latham, have confirmed their involvement and characterized the alleged activities as serious breaches of their trust and internal policies.
Court documents allege that Nourafchan and Yadgarov spent years building a network to access confidential merger and acquisition information from Nourafchan’s employers and other firms where they recruited participating attorneys.
The indictment indicates that the lawyer identified as CC-2 – whom sources say is Sutton – began providing insider information about upcoming deals involving Wachtell clients in 2014, receiving payment in return for the tips.
The earliest instance cited occurred in August 2014, when he allegedly leaked details about the potential acquisition of Canadian coffee and restaurant company Tim Hortons, which Burger King publicly announced days later. Over the following years, prosecutors say he provided advance notice of deals involving companies including Actelion, C.R. Bard, Qualcomm, and Express Scripts.
Even after moving to LionTree, the indictment alleges he continued the illegal activity, providing information in August 2023 about a potential transaction involving Adevinta, an online classifieds company backed by eBay.
