Dozens charged in global insider trading scheme after making millions in illicit profits

In a significant crackdown on financial crime, US authorities have unsealed charges against 30 individuals implicated in a sophisticated, decade-long insider trading scheme. This operation, spearheaded by the Massachusetts District Attorney's Office and involving the FBI, has targeted a network of corporate attorneys and financial professionals accused of exploiting privileged information for illicit profits.

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With today's arrests, the FBI has dismantled a large-scale, decade-long, international organized criminal network of corporate attorneys and financial professionals who are accused of stealing and trading on material, non-public information from several of our nation’s leading law firms, including one right here in Massachusetts.

The scheme allegedly involved stealing and trading on material, non-public information related to nearly 30 merger and acquisition deals from several prominent US law firms. The scale and duration of this operation highlight a concerning vulnerability within the financial and legal sectors, where access to sensitive data was apparently leveraged for personal gain.

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Everyone charged today is accused of scoring significant profits from expected market moves and making out like bandits... Anyone who engages in insider trading fundamentally undermines the trust necessary for our financial markets to function.

Of particular note, two defendants are currently considered fugitives, located in Russia and Israel, underscoring the international dimension of this criminal enterprise. The arrests of 19 individuals across various US cities mark a substantial blow to the network, with charges ranging from conspiracy to commit securities fraud to money laundering.

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The trading on unannounced financial news alleged here not only violated the securities laws, but it also took advantage of the special access and ethical duties that come with a law license. If the American people believe that trading is only for the connected, they will keep their investment and retirement savings out of the markets, which will hurt our economy. Today’s charges, the result of a years-long investigation with our law enforcement partners, are part of my office’s ongoing efforts to ensure a level playing field for all investors.

US Attorney Leah B. Foley emphasized the importance of maintaining trust in financial markets, stating that insider trading fundamentally undermines the integrity necessary for these markets to function. The investigation and subsequent charges aim to ensure a level playing field for all investors, preventing a scenario where trading success is perceived as solely dependent on illicit connections rather than genuine market analysis. The use of coded language in text exchanges between defendants, such as discussing a deal by asking "How's the rabbi?", reveals the clandestine nature of their operations.

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How's the rabbi??