The U.S. Department of Justice recently announced that four individuals were sentenced to prison for participating in an insider trading scheme involving material nonpublic information (“MNPI”) about the $3.2 billion merger of two companies. On June 23, 2026, Rouzbeh Ross Haghighat (“Haghighat”) was sentenced to 40 months in prison, while his stepdaughter Kirstyn Pearl received 6 months in prison for her role in the scheme. According to federal prosecutors, Haghighat abused his position as a board member of an unnamed publicly traded company by using the information about an upcoming acquisition to trade in securities and encouraged friends and family to do the same. The scheme allegedly generated more than $600,000 in illicit profits and involved trading in securities ahead of the public announcement of the merger. In May 2026, co-defendants Seyedfarbod “Fabio” Sabzevari and James Roberge were sentenced to 14 months and two months’ imprisonment, respectively.
Specifically, Haghighat – a Massachusetts resident who served on the board of directors of a Seattle-based biopharmaceutical company (“Company-1”) – is accused of obtaining sensitive information in May 2023 about another pharmaceutical company’s proposed acquisition of Company-1. Based on this MNPI, Haghighat allegedly purchased securities of Company-1 and tipped Pearl, his co-worker Sabzevari, his friend Roberge, and his brother Behrouz “Bruce” Haghighat (“Bruce”), who allegedly purchased Company-1 securities before the acquisition was announced in June 2023, causing Company-1’s share price to spike.
In May 2025, Haghighat, Bruce, Pearl, Sabzevari, and Roberge were charged with insider trading and securities fraud. Haghighat, Bruce, and Pearl were additionally charged with securities fraud conspiracy. In December 2025, a jury found four defendants – Haghighat, Pearl, Sabzevari and Roberge – guilty of securities fraud and insider trading. Haghighat, in particular, was convicted of securities fraud, 16 counts of insider trading, and two conspiracy counts. The criminal case against Bruce Haghighat continues. According to court documents, Pearl, Sabzevari and Roberge have appealed their convictions.
In August 2025, the Securities and Exchange Commission filed parallel civil insider trading charges against Haghighat, Bruce, Pearl, Sabzevari, and Roberge. According to the SEC’s complaint, each party was charged with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. This case is stayed pending the conclusion of the criminal case.
DOJ Press Release | Verdict | Indictment| SEC Litigation Release | SEC Complaint