Insider Trading Scandal: The Secret Guilty Plea of an AI startup CEO

Arya Bolurfrushan, the CEO of AI startup AppliedAI, secretly pleaded guilty last year to involvement in a major insider trading scheme. He conspired with attorneys to trade on confidential merger information. The case involves multiple individuals and major law firms, shedding light on long-running illegal trading practices.

Arya Bolurfrushan, the founder and CEO of Abu Dhabi-based AppliedAI, secretly confessed last year to joining a vast insider trading operation. Newly unsealed court records reveal his involvement in trading schemes orchestrated by attorneys from major law firms. Bolurfrushan, who previously worked at Goldman Sachs, pleaded guilty in June 2025 in a deal with Boston federal prosecutors.

Bolurfrushan was implicated alongside others, including Nicolo Nourafchan, a professional from famous law firms Sidley Austin, Latham & Watkins, and Goodwin Procter, who is facing charges for capitalizing on confidential information about mergers. Nourafchan, along with another partner, allegedly passed sensitive merger tips to Bolurfrushan, who admitted to benefiting financially by employing the leaked data.

The incidents were traced back to discussions and deals in 2023 and 2024. Prosecutors and the U.S. Securities and Exchange Commission noted Bolurfrushan's engagement in insider trading activities involving major mergers, including those of Orchard Therapeutics and Enstar. Prosecutors continue to build their case against those involved in this expansive insider trading network.