BOSTON: The founder and chief executive officer of Abu Dhabi-based artificial intelligence company AppliedAI, Arya Bolurfrushan, has pleaded guilty to participating in a multimillion-dollar insider trading scheme involving confidential merger information leaked by lawyers at major U.S. law firms.
Court documents unsealed in Boston revealed that Bolurfrushan secretly entered his guilty plea in June 2025 after reaching a cooperation agreement with federal prosecutors investigating one of the largest insider trading conspiracies in recent years.
The former Goldman Sachs banker admitted to conspiring to commit securities fraud by trading on non-public information about corporate mergers, generating nearly $954,500 in illegal profits.
Federal prosecutors have recommended that Bolurfrushan be sentenced to two years in prison and ordered to forfeit approximately $954,496 earned through illegal stock trades.
The plea remained under seal for more than a year while investigators expanded their probe into a network of traders and lawyers accused of exploiting confidential merger information for personal financial gain.
Bolurfrushan’s attorney declined to comment on the case.
According to prosecutors, Bolurfrushan received insider information from attorney Nicolo Nourafchan and personal injury lawyer Robert Yadgarov.
Authorities allege Nourafchan worked at several prestigious U.S. law firms, including Sidley Austin, Latham & Watkins and Goodwin Procter, where he had access to highly confidential corporate transactions involving mergers and acquisitions.
Investigators say the attorneys secretly shared market-sensitive information with Bolurfrushan in exchange for a percentage of the profits generated from the illegal trades.
The three men reportedly met through a family connection, and Bolurfrushan joined the insider trading operation while living in Dubai in 2023.
Nourafchan and Yadgarov have both pleaded not guilty to securities fraud and related criminal charges and are awaiting trial.
One of the most significant transactions involved confidential information surrounding the planned acquisition of biotechnology company Orchard Therapeutics by Japanese pharmaceutical giant Kyowa Kirin.
Prosecutors allege Nourafchan improperly accessed electronic documents relating to the acquisition while employed at Goodwin Procter despite not being assigned to the transaction.
Using the confidential information, Bolurfrushan purchased Orchard Therapeutics securities before the acquisition became public, earning roughly $950,000 in illegal profits.
The U.S. Securities and Exchange Commission (SEC) said Bolurfrushan later shared approximately $60,000 of those profits with Nourafchan and Yadgarov as payment for the insider tips.
Authorities also accused the AppliedAI founder of carrying out another insider trade in 2024 after receiving confidential information about investment firm Sixth Street’s planned $5.1 billion acquisition of insurance company Enstar.
The SEC announced that it had reached a civil settlement with Bolurfrushan over the insider trading allegations while federal criminal proceedings continue.
Bolurfrushan is among at least 10 individuals who secretly pleaded guilty before prosecutors publicly announced charges against dozens of suspects connected to the long-running insider trading network.
Federal investigators continue pursuing criminal cases against numerous defendants accused of using confidential legal information to profit from stock market trades tied to major corporate mergers.
The case underscores the increasing scrutiny by U.S. authorities on insider trading involving confidential merger and acquisition deals, particularly those involving professionals entrusted with highly sensitive corporate information.
