A corporate lawyer once trusted with confidential merger files inside some of America’s elite law firms has now emerged as a key witness in a sprawling insider trading investigation that federal authorities say operated quietly for years behind the polished walls of Big Law.
Gabriel Gershowitz, formerly associated with Willkie Farr & Gallagher, admitted in court that he leaked confidential information tied to major corporate mergers, according to filings unsealed in Boston. Prosecutors allege those tips became part of a lucrative insider trading network that generated millions through illegal stock trades placed before takeover announcements became public.
The case, unveiled publicly this week, has already swept up 30 individuals. Nine of them, including Gershowitz, had secretly entered guilty pleas over the past two years while investigators pieced together what prosecutors describe as one of the most extensive insider trading conspiracies in recent memory.
At the center of the alleged operation are Nicolo Nourafchan, a corporate attorney who previously worked at Sidley Austin, Latham & Watkins and Goodwin Procter, along with personal injury lawyer Robert Yadgarov. Federal authorities claim the pair coordinated a years-long pipeline of confidential merger intelligence sourced from lawyers embedded inside powerful firms handling billion-dollar transactions.
Nourafchan and Yadgarov were arrested alongside several others on Wednesday as prosecutors moved the investigation into public view.
Court filings indicate Gershowitz has been cooperating with investigators since pleading guilty to conspiracy charges tied to securities fraud. Prosecutors have repeatedly delayed his sentencing while using his assistance to deepen the probe. In exchange for that cooperation, the government has agreed to recommend a two-year prison sentence.
The investigation traces back to relationships formed during college. According to prosecutors and the U.S. Securities and Exchange Commission, Gershowitz, Nourafchan and Yadgarov all knew each other from George Washington University and remained close after graduation.
Authorities say the scheme began taking shape soon after Nourafchan entered corporate law practice in 2013. Over time, investigators allege, more lawyers were pulled into the network, including attorneys working on highly confidential mergers and acquisitions.
Gershowitz allegedly joined the operation around 2018 while working at Weil, Gotshal & Manges. Prosecutors claim he later supplied inside information connected to Ardagh Group’s merger involving Exal Corp., allowing traders linked to the scheme to position themselves before the market-moving announcement.
The alleged conduct continued across multiple firms. Gershowitz later worked at DLA Piper before moving to Willkie in 2021, where his practice reportedly focused on insurance-related transactions.
Federal regulators say the tipping activity stretched into 2024. One episode described in the SEC complaint alleges Gershowitz met Yadgarov at a New York bookstore and disclosed confidential details concerning a proposed acquisition involving insurer Enstar and investment firm Sixth Street.
Investigators say Gershowitz received cash in return for the information he supplied. He has agreed to forfeit $37,000, which prosecutors say represented his profits from the operation.
The law firms named in the investigation have uniformly portrayed themselves as victims, stressing that the alleged misconduct violated internal compliance rules designed to protect sensitive client information.
The criminal proceedings are continuing in federal court in Massachusetts, where prosecutors are preparing for potential trials against the remaining defendants.
