Law Firm Employee Chetram Balli Charged with Insider Trading: Allegedly Traded at Least Eight Times, Made About $55,000
The U.S. Securities and Exchange Commission (SEC) on November 12 charged Chetram Balli, an employee of a large international law firm, with allegedly using material nonpublic information to trade the stocks of the law firm's clients and other entities involved in upcoming transactions.
According to the SEC's complaint, Balli is employed as a document processing specialist at the New York office of a large international law firm with a substantial mergers and acquisitions practice. Through his employment, Balli allegedly obtained material nonpublic information about forthcoming announcements of mergers and acquisitions involving the firm's clients. As alleged, between May 2025 and October 2026, despite his employer's prohibition on engaging in insider trading, Balli allegedly traded on the basis of that information on at least eight occasions and generated approximately $55,000 in ill-gotten profits.
The SEC's complaint, filed in the U.S. District Court for the Eastern District of New York (No. 26-cv-7294), charges Balli with violating the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The complaint seeks injunctive relief, disgorgement with prejudgment interest, and civil monetary penalties. On the same day, Balli was charged in a parallel criminal action brought by the U.S. Attorney's Office for the Eastern District of New York. The charges are allegations that remain to be proven in court.
The SEC said its investigation originated from the Enforcement Division's Market Abuse Unit, which used Consolidated Audit Trail (CAT) data to analyze Balli's suspicious trading activity. The SEC thanked the U.S. Attorney's Office for the Eastern District of New York, the FBI, and the Financial Industry Regulatory Authority for their assistance. (Source: U.S. Securities and Exchange Commission)
Source: U.S. Securities and Exchange Commission
Published by GSM · USA (original Chinese edition)
Photo: 图：美国司法部总部大楼（四级图库联邦核心包固定图），Balli 同日被纽约东区联邦检察官办公室平行刑事起诉。 / Image: U.S. Department of Justice headquarters building (fixed image from the federal core asset pack); Balli was charged the same day in a parallel criminal action by the U.S. Attorney's Office for the Eastern District of New York.
