News Summary

Two Massachusetts men, Rouzbeh Haghighat and James Roberge, have been indicted for their roles in a major insider trading scheme that allegedly generated over $600,000 in illegal profits. The indictment includes charges against five individuals, involving illegal trading of securities linked to a biopharmaceutical company. The U.S. Justice Department emphasizes the significance of combatting such frauds, as they compromise the integrity of financial markets. If convicted, the defendants could face decades in prison.

Boston, Massachusetts – Two men from Massachusetts have been indicted for their involvement in a significant insider trading scheme that allegedly earned them over $600,000 in illegal profits. The indictment, announced by federal justice department officials, involves five individuals in total, including Rouzbeh “Ross” Haghighat, 61, from West Newbury, and James Roberge, 70, from Westford.

The charges stem from illegal trading of securities linked to a biopharmaceutical company based in Seattle, Washington, where Haghighat served as a director. Additionally, Haghighat holds the position of chair of the Board of Directors for Sernova, a biopharmaceutical company located in Ontario, Canada. Alongside Haghighat and Roberge, three others have been indicted: Behrouz “Bruce” Haghighat, 60, of Laguna Niguel, California; Kirstyn Pearl, 35, of Aguadilla, Puerto Rico; and Seyedfarbod “Fabio” Sabzevari, 31, of North Hollywood, California.

According to the indictment, the group is accused of engaging in insider trading by unlawfully purchasing securities based on confidential information regarding a proposed acquisition by a pharmaceutical company. The illicit trading reportedly took place between May and June 2023, prior to a public announcement that caused a significant spike in the company’s share price.

Matthew Galeotti, the head of the Justice Department’s Criminal Division, emphasized that securities fraud and insider trading undermine the integrity of financial markets, making such activities a priority for law enforcement. He noted that those engaged in these practices would face severe repercussions.

Details of the charges reveal that Ross Haghighat faces one count of securities fraud, 16 counts of insider trading, and two counts of conspiracy. Roberge and Sabzevari are each charged with one count of securities fraud and seven counts of insider trading. Behrouz Haghighat and Kirstyn Pearl are charged with one count of securities fraud, one count of insider trading, and one count of conspiracy.

The indictment specifies that in May 2023, a confidential proposal for an acquisition was made that offered a price above the existing market value. This announcement led to a notable increase in the company’s share price, benefiting those who had acted on the insider information.

Inspector Eric Shen confirmed the commitment of the U.S. Postal Inspection Service in maintaining the integrity of financial markets as the investigation continues. Prosecutors have indicated that Ross Haghighat used his executive position to obtain insider information, sharing it with co-conspirators to facilitate unlawful trades.

If convicted, each defendant faces severe penalties, with maximum sentences of up to 25 years in prison for securities fraud and 20 years for insider trading charges. The ongoing investigation by the U.S. Postal Inspection Service is part of a broader crackdown on financial crimes affecting the marketplace.

This case highlights the serious implications of insider trading, not only for the individuals involved but also for the financial markets they manipulate. As the legal proceedings move forward, implications for corporate governance and ethical trading practices will be closely examined by industry analysts and regulatory bodies alike.