Traders plead guilty to BigLaw stolen-info scheme
Two traders pleaded guilty Thursday in Massachusetts federal court for participating in a scheme that involved stealing inside details about upcoming deals from law firms and trading on the information. (Image from Shutterstock)
Two traders pleaded guilty Thursday in Massachusetts federal court for participating in a scheme that involved stealing inside details about upcoming deals from law firms and trading on the information.
Yisroel Horowitz, 50, of Florida, and David Ostrov, 49, of New Jersey, admitted to using stolen nonpublic information to trade stocks and then sending kickback payments to the conspiracy’s ringleaders, according to a story by Law360.
Horowitz and Ostrov pleaded guilty to one count of securities fraud conspiracy, with likely sentencing at 18 months for Horowitz and six months for Ostrov, according to Law360.
Sentencing is scheduled for Oct. 29 for Horowitz and Nov. 2 for Ostrov.
Nicolo Nourafchan—a former associate at Sidley Austin, Latham & Watkins and Goodwin Procter—and Robert Yadgarov, an attorney in New York, were the masterminds behind the scheme, according to prosecutors.
Prosecutors also said Nourafchan recruited lawyers from Wachtell, Lipton, Rosen & Katz and Weil, Gotshal & Manges to participate in the conspiracy. Nourafchan and Yadgarov have denied guilt.
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