SEC Charges Law Firm Employee Chetram Balli with Insider Trading

The Securities and Exchange Commission (SEC) has charged Chetram Balli, a document processing specialist at the New York office of a large international law firm, with insider trading, the regulator announced on November 12, 2026.

According to the SEC’s complaint, Balli allegedly used material nonpublic information obtained through his employment to trade the stocks of the law firm’s clients and other entities involved in upcoming transactions. The firm has a substantial mergers and acquisitions practice, and Balli allegedly learned about forthcoming announcements of mergers and acquisitions involving its clients.

The SEC alleges that between May 2025 and October 2026, despite his employer’s prohibition on insider trading, Balli traded on the basis of material nonpublic information on at least eight occasions, generating approximately $55,000 in ill-gotten profits.

The complaint, filed in the U.S. District Court for the Eastern District of New York, charges Balli with violating the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The SEC seeks injunctive relief, disgorgement with prejudgment interest, and civil monetary penalties.

On the same date, Balli was charged in a parallel criminal action brought by the U.S. Attorney’s Office for the Eastern District of New York.