A federal jury in Newark, New Jersey convicted four individuals today for their participation in a scheme to trade securities on the basis of material nonpublic information about the $3.2 billion merger of two companies, which resulted in illicit profits of over $600,000.
“Haghighat abused his role as a senior corporate executive, breaching the trust and confidence placed in him by shareholders, to enrich himself and his friends and family,” said Acting Assistant Attorney General Matthew R. Galeotti. “He schemed together with his co-defendants to illegally profit from non-public, insider trading information. Today’s verdict underscores the Criminal Division’s commitment to aggressively prosecuting those who use deception to earn illicit gains at the expense of investors and undermine fairness in the economy.”
“This is a classic example of greed overcoming honest business practices,” said Inspector in Charge Eric Shen of the U.S. Postal Inspection Service Criminal Investigations Group. “These defendants took advantage of insider information when they conspired to devise a scheme to provide protected information to co-conspirators for the purpose of enriching their lifestyles and padding their pockets. Their undoing came when they underestimated the resolve and tenacity of postal inspectors to bring to justice anyone who commits a crime against the public and the rule of law.”
According to court documents and evidence presented at trial, Rouzbeh “Ross” Haghighat, 61, of West Newbury, Massachusetts; Kirstyn Pearl, 35, of Aguadilla, Puerto Rico; Seyedfarbod “Fabio” Sabzevari, 31, of North Hollywood, California; and James Roberge, 70, of Westford, Massachusetts, unlawfully purchased the securities of a biopharmaceutical company in Seattle, Washington (Company-1), where Haghighat served on the board of directors. In his position as a director in May 2023, Haghighat obtained material nonpublic inside information about another pharmaceutical company’s (Company-2) proposed acquisition of Company-1, including sensitive deal terms. He then purchased securities, and tipped others – including Pearl, Sabzevari, and Roberge – for personal benefit with the expectation that they would purchase securities of Company-1, which the other defendants did. In May 2023, Company-2 made a confidential proposal to acquire Company-1 at a price per share above the then-current market value. The two companies then negotiated an agreement for the acquisition, which was announced in June 2023, causing the share price of Company-1 to spike. Collectively, the defendants profited more than $600,000 from their purchases of Company-1 securities based on material nonpublic information.
Haghighat was convicted of one count of securities fraud, 16 counts of insider trading, and two counts of conspiracy. Pearl was convicted of one count of securities fraud, one count of insider trading, and one count of conspiracy. Sabzevari was convicted of one count of securities fraud and seven counts of insider trading. Roberge was convicted of one count of securities fraud and seven counts of insider trading. They are scheduled to be sentenced on May 4, 2026 . Haghighat faces a maximum penalty of 380 years in prison. Pearl faces a maximum penalty of 60 years in prison. Sabzavari faces a maximum penalty of 160 years in prison. Roberge faces a maximum penalty of 160 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Postal Inspection Service investigated the case.
Trial Attorneys John J. Liolos and Tamara Livshiz of the Criminal Division’s Fraud Section are prosecuting the case.