AI startup CEO secretly pleaded guilty to insider trading scheme

Reuters··Read original
2▲0 ▼1Impact / 5
Summary · why it matters

The founder and CEO of an AI startup secretly pleaded guilty last year to participating in a vast insider trading scheme involving tips from lawyers at major law firms. 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. He admitted to conspiring to commit securities fraud, with prosecutors recommending a two-year prison sentence and forfeiture of $954,496. Bolurfrushan traded on tips from Nicolo Nourafchan, who had worked at Sidley Austin, Latham & Watkins and Goodwin Procter, and his partner Robert Yadgarov, in exchange for a cut of profits. The scheme included trading on confidential information about the acquisition of Orchard Therapeutics by Kyowa Kirin Co Ltd, earning $950,000 in profits, and a tip about Sixth Street's $5.1 billion acquisition of Enstar.

Impact on assets 1

Biotech & Genomic Medicine▼
Kyowa Kirin Co., Ltd.
4151
▼ NegativeRegulationrelevance

Insider trading on Orchard Therapeutics acquisition by Kyowa Kirin may raise regulatory scrutiny or reputational concerns.

Off-coverage companies 3

AppliedAIi
Private▼ NegativeRegulationrelevance

CEO pleaded guilty to insider trading, damaging company reputation and leadership credibility.

Enstar Groupi
Private▼ NegativeRegulationrelevance

Insider trading on Sixth Street's acquisition of Enstar may raise regulatory scrutiny or reputational concerns.

Sixth Street Partnersi
Private± Mixedrelevance