Illustration: Shoshana Gordon/Axios
Thirty people are accused of running a decade-long insider trading scheme that involved stealing confidential information about M&A deals from corporate law firms, according to federal charges unsealed Wednesday.
Why it matters: The group, which includes attorneys and financial professionals, allegedly collected "tens of millions in illicit profits."
Zoom in: Nicolo Nourafchan and Robert Yadgarov are said to have recruited fellow lawyers to provide non-public details on mergers involving publicly traded companies in exchange for kickbacks.
- The pair passed the information through traders and middlemen, and trades were made ahead of nearly 30 M&A deals, prosecutors say.
- In one instance, Nourafchan is accused of viewing private deal information for a transaction he was not working on, involving Amazon and iRobot, while on a leave of absence from his law firm. Another defendant then allegedly traded on that information.
- The group, which spans several states and Russia and Israel, allegedly used burner phones, coded language, and in-person meetings to hide their actions.
Between the lines: Nineteen people were arrested Wednesday, and two international defendants are considered fugitives.
What they're saying: "Everyone charged today is accused of scoring significant profits from expected market moves and making out like bandits," Ted E. Docks, special agent in charge of the FBI's Boston division, said in a statement.
