The Department of Justice (DOJ) unsealed charges on Wednesday, May 6, against 30 defendants in a large-scale insider trading scheme that ran for approximately 10 years and generated tens of millions of dollars in illicit profits, according to a DOJ statement.
The alleged scheme involved corporate attorneys and other financial professionals who stole confidential information from several major law firms, including one based in Massachusetts, officials said. Nineteen defendants were arrested on Wednesday and will appear in federal courts in Los Angeles, Fort Lauderdale and New York, among other locations. Two defendants in Russia and Israel are considered fugitives, the DOJ reported.
The indictment, filed in federal court in Boston, describes a network of professionals who allegedly shared nonpublic merger and acquisition information in exchange for kickbacks. U.S. Attorney Leah B. Foley said in a statement that the defendants "undermined trust in our financial markets" and that the charges stem from a coordinated effort by the Federal Bureau of Investigation (FBI) and the Securities and Exchange Commission (SEC). The case is among the largest insider trading prosecutions in recent years, according to legal analysts.
Alleged Ringleader and Key Defendants
Nicolo Nourafchan, 43, a licensed corporate attorney, is accused of leading the operation by accessing law firm document management systems to view confidential merger and acquisition details, then sharing that information in exchange for kickbacks, according to the indictment [1]. Among those indicted is David Bratslavsky, a tech entrepreneur and former executive director of the U.S.-Israel Business Council, who is alleged to have traded on inside information and provided kickbacks to Nourafchan, according to the DOJ.
Charging documents list 16 defendants in the first indictment, including Bratslavsky, and five in a second indictment; charges include conspiracy to commit securities fraud, securities fraud and money laundering conspiracy, the DOJ said. The indictment alleges that Nourafchan received payments disguised as consulting fees and loans. Some defendants also face charges of making false statements to investigators.
Bratslavsky's Past Statements and Alleged Role
Bratslavsky, who also served as associate for policy and planning at the Conference of Presidents of Major American Jewish Organizations, gave a 2013 speech titled "One People" in which he referenced the Bernie Madoff scandal and said Jews "rise together and fall together," according to the Jewish News Syndicate [1].
The indictment does not reference Bratslavsky's speech; prosecutors allege he participated in the insider trading scheme alongside Nourafchan, a college friend, according to the DOJ. Bratslavsky is charged with two counts of conspiracy to commit securities fraud, two counts of securities fraud, and one count of money laundering conspiracy, the charging document states.
His attorney declined to comment when reached by reporters. The speeches have drawn attention because of their reference to Jewish communal solidarity, though prosecutors have not linked them to the alleged crimes.
Methods Used to Evade Detection
Defendants allegedly used burner phones, encrypted messaging apps and coded language referring to flights and a "rabbi's surgery" to discuss inside information, according to the indictment [1]. In one example cited by prosecutors, Nourafchan viewed confidential documents about a potential acquisition of iRobot on June 7, 2022. Days later, Simon Fensterszaub purchased iRobot securities while in possession of that inside information, the DOJ alleged.
The group also used brokerage accounts in shell companies' names, traded through foreign accounts and disguised kickbacks as loans or business transactions to avoid detection, the indictment stated. Prosecutors said the defendants communicated through Signal and WhatsApp, using code words such as "the weather" to refer to market conditions.
In some instances, they allegedly used pre-paid mobile phones purchased with cash and discarded them after each use. The DOJ said the scheme involved trades in at least 20 different publicly traded companies.
Potential Penalties and Ongoing Investigation
The charge of conspiracy to commit Title 18 securities fraud carries up to 25 years in prison and a fine of $250,000 or twice the gross gain or loss, according to the DOJ [1]. Foley said the alleged scheme undermined trust in financial markets and that the charges are part of ongoing efforts to ensure a level playing field for all investors, according to the DOJ statement. FBI Special Agent Ted E. Docks stated that the arrests dismantled an international organized criminal network; all defendants are presumed innocent unless proven guilty beyond a reasonable doubt, officials said.
The investigation remains active, with the DOJ stating that additional charges may be filed. The SEC also filed civil charges against several defendants in a parallel action. Legal experts noted that the case illustrates the use of sophisticated evasion tactics by financial professionals, but cautioned that the government must prove each element beyond a reasonable doubt at trial.
References
- DOJ Indicts Jewish Group for 'Large-Scale, Decade-Long Insider Trading Scheme' - InformationLiberation.com. May 8, 2026.
- Pipe Dreams: Greed, Ego, and the Death of Enron. Robert Bryce.
- Circle of Greed. Patrick Dillon.
- Think the FBI deserves the benefit of the doubt? This laundry list of corruption should make you think again - NaturalNews.com. August 22, 2022.
- Comey prosecution of Martha Stewart and D'Souza demonstrates how federal prosecutors are totally out of control - NaturalNews.com. June 4, 2018.
- Mike Adams interview with Gregory Mannarino - March 16, 2023.
- Health Ranger Report - DEFIANT Sen. Menendez - Mike Adams - Brighteon.com. September 26, 2023.
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