LOS ANGELES
Officials stated that a federal indictment unsealed this week charges five individuals with insider trading that netted over $600,000 in profits tied to a 2023 pharmaceutical merger.
Between May and June 2023, officials stated that the group allegedly used confidential information about a proposed acquisition to buy stock in a Seattle-based biopharma firm (Company-1), ahead of its public merger announcement with another pharmaceutical company (Company-2). Once the deal was announced, Company-1’s stock price surged.
Charged are Rouzbeh “Ross” Haghighat, 61, of Massachusetts—then a director at Company-1—Behrouz “Bruce” Haghighat, 60, of California, Kirstyn Pearl, 35, of Puerto Rico, Seyedfarbod “Fabio” Sabzevari, 31, of California, and James Roberge, 70, of Massachusetts.
“Our office is committed to protecting the integrity of the market and holding accountable those who attempt to gain unfair advantages through trading on insider information,” said U.S. Attorney Alina Habba for the District of New Jersey.
“The defendants were charged yesterday for allegedly trading on inside information and reaping hundreds of thousands in illicit profits,” said Matthew R. Galeotti, Head of the Justice Department’s Criminal Division. “Securities fraud and insider trading distort our financial markets and disadvantage Americans who play by the rules. These charges demonstrate that the Criminal Division is committed to maintaining the integrity of markets by holding accountable all those who defraud investors.”
All defendants are presumed innocent unless proven guilty.
As a director on the board of Company-1, Ross Haghighat allegedly obtained material nonpublic inside information about its acquisition, including sensitive deal terms. He then purchased securities and tipped others—including Bruce Haghighat, Pearl, Sabzevari, and Roberge—for personal benefit in the expectation that they would purchase securities, which the defendants allegedly did.
- Ross Haghighat was charged with one count of securities fraud, 16 counts of insider trading, and two counts of conspiracy. He was previously charged with one count of conspiracy to commit insider trading.
- Bruce Haghighat was charged with one count of securities fraud, one count of insider trading, and one count of conspiracy.
- Pearl was charged with one count of securities fraud, one count of insider trading, and one count of conspiracy.
- Sabzevari and Roberge were both charged with one count of securities fraud and seven counts of insider trading.
“This case makes one thing clear: if you think you can game the system using insider information, think again,” said Inspector in Charge Eric Shen of the U.S. Postal Inspection Service Criminal Investigations Group. “Ross Haghighat and his associates thought they were above the law and colored outside the lines for financial gain, but yesterday’s indictment proves no one is above the law. The U.S. Postal Inspection Service will not hesitate to pursue and bring to justice anyone who tries to corrupt the integrity of our financial markets.”
If convicted, the defendants face a maximum penalty of 25 years in prison on the securities fraud charge and 20 years on each insider-trading charge.
If convicted of conspiracy, Ross Haghighat, Bruce Haghighat, and Pearl face a maximum penalty of 25 years in prison.
The U.S. Postal Inspection Service is investigating the case.
Trial Attorney John J. Liolos of the Criminal Division’s Fraud Section and Assistant U.S. Attorney John Mezzanotte for the District of New Jersey are prosecuting the case.