They texted about Torah and mitzvahs. Feds say they were insider trading
Securities fraud allegations centered on Jewish brothers send shock waves through Big Law
Other code words and phrases used in the alleged scheme included rabbi, shul, and “the next flight to Israel.” Photo by Michael Nagle/Bloomberg via Getty Images
By Louis Keene May 13, 2026
The suspects texted one another as though they had everyone fooled.
“How’s the rabbi?” one asked in a message. “Is he still scheduled for surgery?”
“We are still waiting for the doctor to check if it’s still needed,” came the response.
But there was no surgery, authorities say, and there was no rabbi. Instead, prosecutors allege, the men were referring to Amazon’s impending acquisition of the vacuum company iRobot, hoping to trade on what was then still a closely guarded secret. According to a pair of federal indictments unsealed last week, the deal was one of dozens leaked to a criminal network that used Jewish code words to plan their investments.
At the center of the alleged insider trading scheme was Nicolo Nourafchan, 43, a corporate lawyer who prosecutors say used his access to company files to collect and share deal information with a sprawling network of middlemen and investors. Capitalizing on the lawyer’s knowledge of in-progress mergers and acquisitions, the crew allegedly racked up tens of millions of dollars in illicit proceeds over the course of a decade.
The indictments are rife with Jewish code words that the defendants used in the alleged plot. “Torahs” and “mitzvahs” were stock tips, and a merger was a “flight to Israel.” A “chavrusa” — Aramaic for study partner — meant another lawyer or investor, and a company was a “shul.”
And to share the ticker symbol of a company soon to be acquired, one alleged co-conspirator spelled out its initials using Jewish names.
Nourafchan and the other lawyers received kickbacks when the deals hit, according to prosecutors.
Nineteen of the case’s 30 defendants have been arrested in Los Angeles, New York and Florida and have appeared in federal court. (Two located in Russia and Israel are considered fugitives, according to the Department of Justice.)
Of those, 16 defendants are each charged with two counts of conspiracy to commit securities fraud, two counts of securities fraud and one count of money laundering conspiracy. The conspiracy charges carry a combined sentence of up to 30 years in prison, while the fraud charges carry a sentence of up to 45 years and money laundering up to 20 years. Fines could exceed $5 million per defendant.
Those charged in the first indictment include Nourafchan, who prosecutors say drew extensively on a network of family and friends to build the scheme, and David Bratslavsky, the former director of the U.S. Israel Business Council, a group that brings together business leaders from those two countries.
An additional five alleged co-conspirators, including Nicolo’s brother Lorenzo Nourafchan, face two counts of conspiracy to commit securities fraud, two counts of securities fraud and one count of money laundering conspiracy.
Reuters has reported that Avi Sutton, a former Israeli Supreme Court law clerk, is among the unindicted co-conspirators involved in the alleged scheme. (Sutton could not be reached for comment.)
The prosecutions have caused an earthquake in the world of M&A law, with the Wall Street Journal calling it “one of the most brazen insider-trading schemes in years.” Nicolo Nourafchan had worked at top M&A law firms and leaked information on corporate giants that included Amazon, Johnson & Johnson and Burger King.
“Everyone charged today is accused of scoring significant profits from expected market moves and making out like bandits,” Ted Docks, special agent in charge of the FBI’s Boston division, said May 6 after the charges were announced. “That’s not merely gaming the system — it’s a federal crime.”
If proven guilty, the Nourafchan brothers, who have not yet entered a plea, could face decades in prison. Lawyers for each did not respond to a request for comment.
No attorneys are on record for other defendants and no pleas have been entered yet in the case. The Forward could not reach them for comment.
Ask the ‘rabbi’
To most who knew them, Nicolo and Lorenzo Nourafchan were LA brothers who had made good. They had graduated from top schools — Nicolo from Yale Law School, Lorenzo from Yeshiva University — and gone on to careers in corporate law and finance.
Nicolo bounced around between major law firms including Sidley Austin, Latham & Watkins and Goodwin Procter. At each stop, authorities said, he used internal document management systems to access information about deals that were in progress. He recruited Robert Yadgarov and Gabriel Gershowitz, respectively his former roommate and classmate, to gather tips from their firms, prosecutors allege.
The three would allegedly then pass on the tips to middle-men, who would share the knowledge with investors. (Yadgarov is among the 16 charged in the first indictment. Gershowitz has pleaded guilty and is cooperating with authorities, who have recommended a sentence of two years in prison.)
Eager for the next tip, the investors often badgered the middlemen in code, authorities say.
“Gavy, we are all just waiting for you to tell us when the next flight to Israel is,” one investor named Simon Fensterszaub asked alleged middleman Gavryel Silverstein. “It’s coming soon,” Silverstein replied. (Silverstein is also charged in the first indictment.)
In June 2022, court documents say, Fensterszaub, who had invested in a company expected to be acquired, asked Silverstein for an update on the deal: “Any chance you can find out how the rabbi is feeling?” Fensterszaub wrote.
“Unfortunately nothing,” Silverstein replied.
Then Fensterszaub dropped the code entirely: “Should I tell ppl to pull out?” he said.
Ultimately, he didn’t — and the brothers netted about $179,000 from their iRobot trades.
In another instance, one of the investors, unable to remember the name of the company being purchased, asked a co-conspirator to remind him. The company’s name was Momentive — ticker symbol MNTV.
According to authorities, the person replied:
“Menachem
Nachman
Tuvya
Vladmir”
Silverstein and Simon Fensterszaub, who do not have lawyers currently assigned in court documents, could not be reached for comment.
Family affairs
The Nourafchans are not the only brothers named in the indictments, which in total run more than 120 pages. Text messages from Brian and Mark Fensterszaub, of Hollywood, Florida — Simon’s brothers — show the two using code to discuss Nourafchan with Silverstein, who is their brother-in-law.
The first indictment shows the brothers as regularly agitated about the status of deals. “We need that damn rebbe already,” Mark Fensterszaub allegedly told Silverstein in 2022 as the two discussed money issues.
Soon after, Silverstein came through, court documents say. With Amazon on the verge of acquiring iRobot, he used Hebrew letters to allude to iRobot’s stock symbol in a text, allegedly tipping the brothers to the opportunity.
The traders in Nourafchan’s network made a total of $1.7 million trading on the Amazon/iRobot deal, according to court documents.
After Nourafchan lost his job at Goodwin Procter in September 2023, the Fensterszaubs appeared worried that the tips might stop coming.
“Let’s say he’s not davening or doing any Torahs, mitzvahs,” Brian Fensterszaub told Silverstein that October. “Let’s say he said ‘I don’t have anything, f”ck you, give me my money.’ We’d still be like alright, torah and mitzvahs. We gotta do what we gotta do.” (The three Fensterszaub brothers are charged in the first indictment.)
Nicolo Nourafchan reassured Silverstein that December that more info would be on the way soon. “I’m working on getting a job,” he said, according to court documents. “So baruch hashem we’ll have more.”
Silverstein’s brother-in-law Yisroel Horowitz is also charged in the scheme, as is Brian Fensterszaub’s brother-in-law Joseph Suskind; Eliyahu and Daniel Kavian, another sibling duo, were allegedly connected to the plot through Simon Fensterszaub.
It was the relationship between the Nourafchan brothers, however, that may have led the decade-long scheme to unravel.
Lorenzo Nourafchan, 38, ran a business he started called Northstar Financial Consulting Group, and on LinkedIn had accrued several thousand followers. He also wrote a money column for the Los Angeles Jewish Home, an Orthodox print weekly, in which he wrote about the challenges and opportunities of being an Orthodox business owner. (The LA Jewish Home did not respond to an inquiry.)
Lorenzo was looser with the information, court documents show, recruiting his hair stylist to the scheme, who then involved nearly a dozen of his friends and relatives. Lorenzo instructed the stylist, Miakel Bishay, not to do the trading himself so the trail would not lead back to him, authorities say, but Bishay did anyway. Bishay’s friend, Nowel Milik, netted more than $700,000 in the iRobot deal, according to one of the indictments. (Bishay and Milik are both charged in the second indictment.)
Soon, the jig was up. In March 2024, a federal agent posing as a representative from FINRA, a regulatory organization that monitors trading activity, called Brian Fensterszaub asking for more information about the iRobot trade. The call alarmed Fensterszaub, who immediately called Silverstein to let him know.
“Listen, God forbid that I don’t think anything should come of it,” Fensterszaub told Silverstein, “but God forbid if something did, you don’t need it pointing back to you and you having to deal with it.”
A legal filing from Tuesday by lawyers for the Nourafchan brothers asked the court to grant Lorenzo permission to use the proceeds from the sale of his business to pay for Nicolo’s legal representation. Judge Leo T. Sorokin granted the request.
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