In a shocking turn of events, the founder and CEO of Abu Dhabi-based AI startup AppliedAI, Arya Bolurfrushan, has pleaded guilty to participating in a vast insider trading scheme involving major law firms. According to court records unsealed on Monday, Bolurfrushan secretly pleaded guilty in June 2025 to conspiring to commit securities fraud.
Source: s.yimg.com
Bolurfrushan, a former Goldman Sachs banker, was recruited into the scheme in 2023 by Nicolo Nourafchan, a former associate at law firm Goodwin Procter, and his partner, personal injury attorney Robert Yadgarov. The two lawyers tipped Bolurfrushan off to expected mergers, allowing him to buy securities and profit from the trades. In exchange, Bolurfrushan gave Nourafchan and Yadgarov a cut of his profits.
Prosecutors say Bolurfrushan traded on tips passed along to him by Nourafchan and Yadgarov in exchange for a cut of any trading profits. Bolurfrushan had met the two lawyers through one of Nourafchan’s family members, and the scheme was allegedly set up while Bolurfrushan was in Dubai. According to the U.S. Securities and Exchange Commission (SEC), Bolurfrushan earned $954,496 from the scheme and will forfeit the amount as part of his plea agreement.
Nourafchan and Yadgarov, who also pleaded guilty in secret proceedings before the indictments were announced, are awaiting trial. Prosecutors say Nourafchan accessed electronic documents concerning a deal he was not working on, the planned acquisition of Goodwin’s client Orchard Therapeutics by Kyowa Kirin Co Ltd. Nourafchan tipped Bolurfrushan off to the expected merger, allowing him to buy Orchard securities, authorities say.
The SEC said Nourafchan earned $950,000 in trading profits and passed along about $60,000 to Nourafchan and Yadgarov. Bolurfrushan engaged in insider trading again in mid-2024, based on a tip about investment firm Sixth Street’s plans to acquire insurer Enstar for $5.1 billion, according to charging documents.
Bolurfrushan’s plea agreement includes a recommendation from federal prosecutors in Boston that he be sentenced to two years in prison. His lawyer, Jordan Estes of Gibson, Dunn & Crutcher, declined to comment on the case. Nine other people also pleaded guilty in secret proceedings in the years before prosecutors announced the indictments.
The insider trading scheme is a long-running one, with dozens of people accused of participating. Prosecutors say the scheme involved major law firms, including Sidley Austin, Latham & Watkins, and Goodwin Procter. The scheme allegedly allowed traders to profit from confidential information about mergers underway, and those involved used a complex network of associates and partners to facilitate the trades.
As the investigation continues, it remains to be seen how many others will be implicated in the scheme. The case highlights the ongoing need for vigilance in the financial sector to prevent insider trading and protect investors.
