Leah B. Foley United States Attorney for the District of Massachusetts | Department of Justice
Federal authorities unsealed charges on Jan. 14 against 30 people accused of participating in a decade-long insider trading scheme that allegedly generated tens of millions of dollars in illegal profits. The defendants, including corporate attorneys and financial professionals, are said to have stolen confidential information about nearly 30 merger and acquisition deals from major law firms, one based in Massachusetts.
Nineteen suspects were arrested and are expected to appear in federal courts across several states. Two individuals located abroad remain fugitives. The investigation is ongoing, with additional charges filed against nine others for conspiracy related to securities fraud.
According to the indictments, Nicolo Nourafchan—a licensed attorney at multiple large law firms—and others accessed internal networks to obtain non-public information about pending acquisitions and provided this material to others for kickbacks. "Our country’s financial markets and professional firms should be free from the rampant fraud and breaches of duty that these charges allege," said United States Attorney Leah B. Foley. "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... Today’s charges, the result of a years-long investigation with our law enforcement partners, are part of my office’s ongoing efforts to ensure a level playing field for all investors." Ted E. Docks, Special Agent in Charge at the FBI Boston Division, said: "With today's arrests, the FBI has dismantled a large-scale, decade-long, international organized criminal network... Anyone who engages in insider trading fundamentally undermines the trust necessary for our financial markets to function."
The indictment alleges use of burner phones, encrypted apps, coded language such as references to “flights,” shell companies for brokerage accounts and payments disguised as loans or business transactions through intermediaries abroad—all designed to avoid detection by regulators.
If convicted on conspiracy or securities fraud counts under Title 18 or Title 15 statutes or money laundering conspiracy charges listed in court documents, defendants face potential sentences ranging from five up to twenty-five years per count plus fines up to $5 million depending on conviction specifics; sentences will be determined by federal judges according to U.S. Sentencing Guidelines.
The U.S. Attorney for the District of Massachusetts enforces federal laws—including those related to national security threats and civil rights violations—serves residents statewide through offices including Boston's John Joseph Moakley United States Federal Courthouse as well as branches elsewhere; it employs over 200 staff members advancing community initiatives such as violence prevention according to the official website.
As proceedings move forward against those charged with participating in this alleged international network involving some prominent legal professionals and traders across multiple jurisdictions—including California, Florida, New Jersey and New York—the case underscores continued scrutiny over market integrity.
