SEC and prosecutors charge 30 in decade-long insider trading case

In short: U.S. prosecutors and the SEC say a network of lawyers and traders made tens of millions of dollars by trading on secret merger plans over about a decade.

What happened

Federal prosecutors and the U.S. Securities and Exchange Commission (SEC) announced charges on May 6, 2026, tied to what they describe as a long-running insider trading scheme. The SEC charged 21 people, and a related criminal case names 30 people in total.

Authorities say the group traded on information about roughly 30 mergers and acquisitions, which are company buyouts and tie-ups, between about 2013 and 2024. They claim the trading generated tens of millions of dollars in illegal profits.

The SEC and prosecutors say the operation relied on “material nonpublic information,” meaning important information the public does not have yet (like knowing the ending of a movie before tickets go on sale). Investigators say the information came from confidential law firm documents about deals that had not been announced, including Amazon’s 2022 bid to buy iRobot.

Officials named two alleged leaders, Nicolo Nourafchan, an M&A lawyer based in Los Angeles, and Robert Yadgarov, a New York personal injury lawyer. Prosecutors say they tipped others and received kickbacks, and that the group used burner phones, coded messages, and in-person meetings.

Why it matters

Insider trading cases like this can make markets feel rigged for regular investors. The details also matter because they involve lawyers, who are trusted with clients’ secrets and are expected to follow strict ethical rules.

Source: NYTimes