An inside dealer faces 380 years in prison following illicit profits of $600,000.

A federal jury in Newark, New Jersey, convicted FOUR INDIVIDUALS [THE INSIDERS] for their participation in

• A scheme to trade securities based on material non-public information
• About the $3.2 billion merger of two companies,
• Resulting in illicit profits of over $600,000.

The insiders face between 60 and 380 years in prison.

The insiders

• Haghighat = 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,

Acting Assistant Attorney General Matthew R. Galeotti said

• 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
• 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,

• The insiders unlawfully purchased the securities of a biopharmaceutical company in Seattle, Washington (Company-1), where Haghighat served on the board of directors.

In his position, Haghighat was a director in May 2023:-

• Obtained material non-public inside information and  sensitive deal terms about
• Another pharmaceutical company’s (Company-2) proposed acquisition of Company-1,
• He then:-
• Purchased securities and
• Tipped others — including Pearl, Sabzevari, and Roberge for personal benefit, expecting they would buy securities of Company-1, which they did.

The timeline

• 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 acquisition agreement, which was announced in June 2023, causing the share price of Company-1 to spike.

Profit

• Collectively, the defendants profited more than $600,000 from their purchases of Company-1 securities based on material non-public information.

Convictions and sentencing

• 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.

Sentencing

• They are scheduled for sentencing 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.

Source

https://www.justice.gov/opa/pr/four-individuals-convicted-insider-trading-scheme