Employee at Major International Law Firm Charged With Insider Trading

Earlier today, in federal court in Brooklyn, a criminal complaint was unsealed charging Chetram Balli, also known as "Tony Balli," with insider trading in the shares of five companies listed on the New York Stock Exchange (NYSE) and NASDAQ. Balli was arrested this morning in Queens, New York, and is scheduled to appear this afternoon before United States Magistrate Judge Marcia M. Henry for his initial appearance and arraignment. As alleged in the criminal complaint, Balli misused material non-public information (MNPI) related to the law firm's clients to trade ahead of major mergers and acquisitions. The criminal complaint alleges that Balli made over $70,000 in profit on his trades between April 2025 and October 2026.

Joseph Nocella, Jr., United States Attorney for the Eastern District of New York, and James C. Barnacle, Jr., Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the arrest and charges.

"As alleged, Balli repeatedly traded on inside information that he misappropriated from his employer and his employer's clients," stated United States Attorney Nocella. "Our Office is committed to protecting the integrity of the securities markets and investors who play by the rules. Corrupt individuals who might be tempted to take advantage of their access to confidential information should know that we are watching."

Mr. Nocella expressed his appreciation to the U.S. Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA) Regulatory Operations - Surveillance for their significant assistance in the investigation.

"Chetram Balli allegedly turned privileged access into an illegal advantage, repeatedly trading securities ahead of public announcements involving major corporate transactions. By misappropriating confidential information for personal profit, he gained an unfair edge over law-abiding investors and compromised the fairness that our markets depend upon. May these charges act as a warning to others, that material non-public information cannot be used for personal gain, and if it is, the FBI will follow the trail of deceit to the finish line," stated FBI Assistant Director in Charge Barnacle.

As alleged, since approximately 1989, Balli worked as a Document Processing Specialist at Law Firm-1, a major international law firm based in New York City that maintains multiple practice areas including a mergers and acquisitions practice. As part of his employment, Balli supported attorneys by creating and revising complex legal documents, and preparing and submitting filings through the SEC's Electronic Data gathering, Analysis and Retrieval (EDGAR) system. Balli, who was prohibited by Law Firm-1's policies from trading on MNPI learned in the course of his duties, used his access to non-public client information relating to upcoming partnerships, mergers, and planned acquisitions, to trade in at least five NYSE-listed or NASDAQ-listed companies.

For example, as alleged in the complaint, on May 12, 2025, Balli purchased approximately 14,866 shares in E2open Parent Holdings, Inc. (NYSE: ETWO), a Texas-based provider of supply chain management software. Balli had not previously invested in ETWO shares. Less than two weeks later, on May 25, 2025, WiseTech Global Limited, a leading provider of software solutions for the global trade, logistics, and supply chain industries based in Australia, announced that it had entered into an agreement to acquire E2open in an all-cash transaction for $3.30 per share equating to an enterprise value of $2.1 billion. That share price represented a 28% premium to the closing price of ETWO shares on the previous trading day. Law Firm-1 represented WiseTech in connection with its acquisition of E2open. Balli subsequently sold his entire ETWO position on May 27, 2025, the first trading day after the WiseTech acquisition was announced.

The complaint alleged similar trading by Balli in Forge Global Holdings, Inc. (NYSE: FRGE) in advance of the November 2025 announcement of its acquisition by the Charles Schwab Corporation for $660 million; Paramount Skydance Corp. (NASDAQ: PSKY) in advance of the February 2026 announcement of its acquisition of Warner Bros. Discovery, Inc. for $110 billion; Talkspace, Inc. (NASDAQ: TALK) in advance of the March 2026 announcement of its acquisition by Universal Health Services, Inc. for $853 million; and Pacira BioSciences, Inc. (NYSE: PCRX) in advance of the October 2026 announcement of its acquisition by Viatris Inc. for $1.65 billion.

The charges in the complaint are allegations and the defendant is presumed innocent unless and until proven guilty. If convicted of the charges in the complaint, Balli faces a maximum sentence of 20 years in prison.

The government's case is being handled by the Office's Business and Securities Fraud Section. Assistant United States Attorneys Jonathan P. Lax and Nick M. Axelrod are in charge of the prosecution, with assistance from Paralegal Specialist Melina Piatti-Chayan.

The Defendant:

CHETRAM BALLI
Age: 54
Hollis, Queens

E.D.N.Y. Docket No. 26-MJ-204