Overview
- Federal prosecutors in Brooklyn unsealed a criminal complaint and charged Chetram Balli after his arrest, with the complaint made public on Thursday and an initial court appearance leading to his release on a $75,000 bond.
- Prosecutors allege Balli, a document processing specialist who had worked at the firm since about 1989, traded in the stock of five companies between April 2025 and October 2026 and earned more than $70,000 in alleged illicit profits.
- The filings say Balli used access to confidential legal drafts and SEC EDGAR submissions to time trades ahead of major deal announcements, including the Paramount Skydance purchase of Warner Bros. Discovery.
- The firm identified in reporting as Cravath says Balli is no longer employed there and is cooperating with investigators, and federal prosecutors worked with the FBI, SEC and FINRA on the probe.
- The case tests misappropriation-based insider trading enforcement and highlights how document handlers and EDGAR filers create an access-control risk that law firms must manage through logging, restricted trading rules and tighter staff permissions.