Key facts
- Arya Bolurfrushan, founder of AI startup AppliedAI, pleaded guilty to conspiring to commit securities fraud.
- The scheme involved attorneys at major law firms providing insider information about upcoming mergers.
- Bolurfrushan agreed to forfeit $954,496 in profits and faces a recommended two-year prison sentence.
- He received tips from attorneys Nicolo Nourafchan and Robert Yadgarov, who have pleaded not guilty.
- The SEC settled related civil claims against Bolurfrushan.
Arya Bolurfrushan, the founder and chief executive of AI startup AppliedAI, has pleaded guilty to participating in a broad insider trading scheme. Court records unsealed on Monday revealed that Bolurfrushan, a former Goldman Sachs banker, entered a secret guilty plea in June 2025. He struck a deal with federal prosecutors in Boston who are building cases against numerous individuals accused of profiting from confidential information about mergers.
Bolurfrushan pleaded guilty to conspiring to commit securities fraud. As part of his plea agreement, prosecutors have agreed to recommend a two-year prison sentence and the forfeiture of $954,496 he earned from the scheme. His lawyer declined to comment.
Prosecutors allege that Bolurfrushan received tips from attorneys Nicolo Nourafchan and Robert Yadgarov, who were partners in the scheme and received a cut of his trading profits. Bolurfrushan met the lawyers through a family member of Nourafchan and was recruited into the scheme in 2023 while in Dubai, according to the U.S. Securities and Exchange Commission (SEC), which settled related civil claims against Bolurfrushan on Monday.
Nourafchan and Yadgarov have pleaded not guilty to securities fraud and other charges and are awaiting trial. According to charging documents, Nourafchan, while working as an associate at Goodwin Procter, accessed confidential documents in September 2023 concerning the planned acquisition of Goodwin's client Orchard Therapeutics by Kyowa Kirin Co Ltd. Nourafchan allegedly tipped Bolurfrushan, enabling him to buy Orchard securities and earn approximately $950,000 in profits, of which about $60,000 was passed to Nourafchan and Yadgarov.
Bolurfrushan engaged in further insider trading in mid-2024, based on a tip regarding investment firm Sixth Street's plans to acquire insurer Enstar for $5.1 billion.