By Nate Raymond
BOSTON, July 7 (Reuters) - The founder and chief executive of an AI startup secretly pleaded guilty last year to participating in a vast scheme in which attorneys at major law firms tipped traders about mergers their employers were advising on.
Court records unsealed on Monday show that Arya Bolurfrushan, a former Goldman Sachs banker who founded Abu Dhabi-based AppliedAI, pleaded guilty in June 2025 after striking a deal with federal prosecutors in Boston who were working to build cases against dozens of other people accused of participating in the long-running insider trading scheme.
Those individuals include Nicolo Nourafchan, who had worked at the law firms Sidley Austin, Latham & Watkins and Goodwin Procter before prosecutors in May unveiled charges against him and 29 other people accused of engaging in a scheme to profit from confidential information about mergers underway.
Bolurfrushan pleaded guilty to conspiring to commit securities fraud in a plea agreement where prosecutors agreed to recommend that he be sentenced to two years in prison and forfeit $954,496 he derived from the scheme.
BOSTON, July 7 (Reuters) - The founder and chief executive of an AI startup secretly pleaded guilty last year to participating in a vast scheme in which attorneys at major law firms tipped traders about mergers their employers were advising on.
Court records unsealed on Monday show that Arya Bolurfrushan, a former Goldman Sachs banker who founded Abu Dhabi-based AppliedAI, pleaded guilty in June 2025 after striking a deal with federal prosecutors in Boston who were working to build cases against dozens of other people accused of participating in the long-running insider trading scheme.
Those individuals include Nicolo Nourafchan, who had worked at the law firms Sidley Austin, Latham & Watkins and Goodwin Procter before prosecutors in May unveiled charges against him and 29 other people accused of engaging in a scheme to profit from confidential information about mergers underway.
Bolurfrushan pleaded guilty to conspiring to commit securities fraud in a plea agreement where prosecutors agreed to recommend that he be sentenced to two years in prison and forfeit $954,496 he derived from the scheme.
2 months ago
