SEC Charges 21 in Global Insider Trading Ring Tied to Law Firm Data | LeapRate | Online Trading Industry News, Broker Intelligence & Fintech Analysis

The U.S. Securities and Exchange Commission has charged 21 individuals in one of the broadest insider trading cases of recent years, alleging that a network of traders systematically exploited confidential merger and acquisition information stolen from multiple global law firms between 2018 and 2024. The complaint, filed on 7 May 2026 in the U.S. District Court for the District of Massachusetts (Case No. 26-civ-12068), names attorney Nicolo Nourafchan and businessman Robert Yadgarov as the primary orchestrators of the scheme, which generated millions of dollars in illicit profits across dozens of securities transactions.

According to the SEC’s complaint, Nourafchan — an M&A attorney with access to non-public information (MNPI) through his legal work — passed material tips to Yadgarov, who in turn coordinated a broader trading network. The information concerned pending corporate transactions including mergers, acquisitions, and other significant deals handled by the law firms where Nourafchan worked or had contacts. Participants traded in advance of public announcements, generating profits that the SEC describes as running into the millions. The action involves at least five separate law firms and spans a six-year period, making it one of the most sustained insider trading operations targeting legal sector MNPI in recent memory. International regulators including the FCA (UK), CySEC (Cyprus), the Danish FSA, and Switzerland’s FINMA provided assistance to the investigation. Parallel criminal charges have been filed by the U.S. Department of Justice.

The scale and duration of this case place it alongside the most significant MNPI enforcement actions of the past decade. The SEC has been intensifying its focus on law firm leakage since at least 2021, when it secured charges in separate cases involving attorneys at major firms. The involvement of four foreign regulators signals that trading activity extended well beyond U.S. borders and involved accounts held across multiple jurisdictions — a pattern the SEC’s Market Abuse Unit has made a stated enforcement priority. At 21 defendants, this action is among the largest single insider trading complaints the SEC has filed.

Firms in the legal, investment banking, and advisory sectors should treat this case as a signal that the SEC’s cross-border cooperation capabilities are materially stronger than they were five years ago. Information barriers and MNPI access controls are receiving heightened regulatory scrutiny — the participation of European regulators in a U.S. enforcement action of this scale is a direct illustration of how quickly a domestic investigation can expand internationally.

Source: SEC Litigation Release LR-26551