Law-firm employee accused of trading on confidential merger plans
Federal prosecutors say Chetram “Tony” Balli used information from major transactions involving Cravath clients to make more than $70,000.
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- 12 November 2026
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Complaint unsealed after Queens arrest
Chetram “Tony” Balli, 54, was arrested in Queens and charged in federal court in Brooklyn with securities fraud. Prosecutors say he repeatedly used confidential information obtained through his work as a document-processing specialist at Cravath, Swaine & Moore to trade before public merger announcements. The criminal complaint identifies five transactions and alleges net profits of $71,756 between April 2025 and October 2026. Balli was due to appear before a magistrate judge on Thursday. The charge is an allegation, and he is presumed innocent unless prosecutors prove the case beyond a reasonable doubt. [1] [2]
Trades allegedly tracked major corporate deals
The complaint says Balli bought E2open shares before WiseTech Global announced a proposed $2.1 billion acquisition, then sold after the announcement for a reported $14,978 profit. Prosecutors also cite trading before transactions involving Paramount Skydance, Warner Bros. Discovery, Talkspace, Universal Health Services, Pacira BioSciences and Viatris. Cravath represented parties in some of the deals. Reuters reported that Balli sometimes lost money, including on a Paramount-related trade, but prosecutors calculate that the five criminally charged sets of trades were profitable overall. [1] [2]
SEC files a broader civil case
The Securities and Exchange Commission filed a related civil enforcement action that covers the five transactions in the criminal complaint and three additional alleged trades. The parallel cases apply different burdens of proof and can proceed separately. Prosecutors say Balli had worked at Cravath since 1989 and helped prepare legal documents and corporate filings, giving him access to material nonpublic information. The government alleges he breached a duty of confidentiality by using that information for personal trading before the market learned of the deals. [1] [2]
Firm says it is cooperating
Cravath said Balli no longer works at the firm, that it is cooperating with investigators and that the firm itself is not accused of wrongdoing. Reuters reported that a lawyer for Balli did not respond to a request for comment. The securities-fraud count carries a statutory maximum of 20 years if a conviction is obtained, though any sentence would depend on federal law and the facts found by the court. The next public steps are expected to include arraignment, discovery and scheduling in the Eastern District of New York. [1] [2]
The charge begins, rather than concludes, the case
A criminal complaint records prosecutors’ allegations and the evidence cited for arrest; it is not a conviction. The government would need to prove that Balli possessed material nonpublic information, understood a duty to keep it confidential and traded willfully on that knowledge. Transaction records, workplace access logs and communications are likely to be central if the case proceeds. Securities regulators may also pursue civil remedies under a different burden of proof, but the criminal filing described here comes from federal prosecutors. Balli is entitled to challenge the evidence and present a defense. The court will set deadlines for indictment, motions and any plea discussions after his initial appearance. [1] [2]
Sources & further reading
- Employee at Major International Law Firm Charged With Insider Trading ↗U.S. Attorney’s Office, Eastern District of New York · 2026-11-12 · Primary source
- Longtime Cravath employee arrested on US insider trading charges ↗Reuters · 2026-11-12
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