Rouzbeh Haghighat, Insider Trading, Massachusetts 2023

Five individuals were charged yesterday with participating in a scheme to trade securities on the basis of material nonpublic information about the merger between two companies that resulted in profits of over $600,000. In Massachusetts, Rouzbeh ‘Ross’ Haghighat, 61, of West Newbury, and James Roberge, 70, of Westford, were accused of insider trading along with three others.

According to court documents, between May and June 2023, Rouzbeh ‘Ross’ Haghighat, Behrouz ‘Bruce’ Haghighat, 60, of Laguna Niguel, California, Kirstyn Pearl, 35, of Aguadilla, Puerto Rico, Seyedfarbod ‘Fabio’ Sabzevari, 31, of North Hollywood, California, and James Roberge, allegedly profited more than $600,000 by unlawfully purchasing the securities of a biopharmaceutical company in Seattle, Washington (Company-1), where Ross Haghighat served as a director.

The indictment alleges that, 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 to spike.

‘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.’

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.

Rouzbeh Haghighat, Insider Trading, Massachusetts 2023: Defendant information: Rouzbeh ‘Ross’ Haghighat, exact criminal charges: securities fraud, 16 counts of insider trading, two counts of conspiracy, city and state: West Newbury, Massachusetts, exact date: between May and June 2023, sentence or outcome: currently charged, dollar amounts: over $600,000.

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.

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