Fifteen Lawyers Plead Not Guilty to Insider Trading Charges

On Monday, fifteen individuals, including several attorneys from prominent law firms, entered not guilty pleas to federal charges related to an insider trading scheme that allegedly spanned a decade. The scheme involved sharing information about roughly 30 ongoing mergers.

Among those presenting their cases in Boston’s federal court was Nicolo Nuravchan, who previously worked at Sidley Austin, Latham & Watkins, and Goodwin Procter. He faces charges that include securities fraud.

In total, 30 individuals have been implicated in this ten-year operation, which prosecutors assert garnered tens of millions of dollars. Nuravchan and personal injury lawyer Robert Yadgarov are said to be the masterminds behind it.

Yadgarov also pleaded not guilty, alongside Lorenzo Nuravchan, Nicolo’s brother, who serves as a fractional CFO and founded an accounting firm. Interestingly, he’s covering Nicolo’s legal expenses, a situation that a federal judge cautioned could lead to a conflict of interest.

“As it stands, your interests might diverge,” remarked federal judge Judith Dane.

Nicolo’s attorney, Martin Weinberg, stated that they “pleaded not guilty to every charge during today’s arraignment, and we plan to mount a vigorous and persuasive defense.”

Authorities claimed the scheme kicked off in 2014, shortly after Nicolo graduated from Yale Law School and began working at Sidley Austin. While at the firm, it’s alleged that he informed Yadgarov and others about upcoming business deals in exchange for portions of the profits.

Nicolo Nuravchan and Yadgarov reportedly encouraged other lawyers to become involved too, including those affiliated with firms like Wachtel, Lipton, Rosen & Katz, Weill, Gotshal & Manges, and Willkie, Farr & Gallagher.

A notable figure, Gabriel Gershowitz, secretly pleaded guilty last year and is currently cooperating with prosecutors. Eight other guilty pleas have emerged since the beginning of 2024, with further details released on May 6 when the charges were announced.

Interestingly, many defendants are of Jewish descent, and the indictment noted that they communicated in code through encrypted messages when discussing merger information—referring to one deal as “Flight to Israel” and another as “Rabbi.”

Among the defendants is Joseph Susskind, an insurance adjuster indicted in 2022 for providing insights on deals involving Sailpoint, which was taken over by Thoma Bravo, and iRobot, later purchased by Amazon. His attorney, Michael Kendall, asserted Susskind’s innocence.

“Evidence will outweigh mere press statements,” Kendall told reporters after Susskind’s arraignment, adding that he was eager for the trial.