Two Massachusetts men among 5 people indicted in insider trading scheme, DOJ says
Two Massachusetts men are among five people indicted in an insider trading scheme that reached the West Coast, federal justice department officials said Friday.
Rouzbeh 'Ross' Haghighat, 61, of West Newbury, and James Roberge, 70, of Westford, are among those accused of allegedly profiting more than $600,000 by unlawfully buying the securities of a biopharmaceutical company in Seattle, Washington where Haghighat served as director, in 2023, Department of Justice officials said in a statement.
Haghighat is listed as chair of the Board of Directors for Sernova, a biopharmaceutical company headquartered in Ontario, Canada, according to the company's website.
Three others also charged in the case are Behrouz 'Bruce' Haghighat, 60, of Laguna Niguel, California; Kirstyn Pearl, 35, of Aguadilla, Puerto Rico; and Seyedfarbod 'Fabio' Sabzevari, 31, of North Hollywood, California.
'The defendants were charged yesterday for allegedly trading on inside information and reaping hundreds of thousands in illicit profits,' Matthew Galeotti, Head of the Justice Department's Criminal Division, said in a statement on Friday.
'Securities fraud and insider trading distort our financial markets and disadvantage Americans who play by the rules,' Galeotti said. '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, officials said. He was previously charged with one count of conspiracy to commit insider trading.
Roberge and Sabzevari were both charged with one count of securities fraud and seven counts of insider trading.
Bruce Haghighat and Pearl were each charged with one count of securities fraud, one count of insider trading, and one count of conspiracy.
A Biospace.com press release on Jan. 30 announced Ross Haghighat as board chairman and a change of name to Sernova Biotherapeutics.
The press release describes the company as 'a leading regenerative medicine company focused on developing its Cell Pouch bio-hybrid organ as a functional cure for Type 1 diabetes.'
'With a proven track record in driving successful innovations, strategic growth and mergers and acquisitions in the biotechnology and life sciences sectors, Mr. Haghighat brings a wealth of financing and deal experience to Sernova's Board and leadership team,' the press release states.
According to court documents, between May and June 2023, the five accused insider traders 'traded securities based on material nonpublic information about another pharmaceutical company's (Company-2) proposed acquisition of Company-1.'
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.
'This case makes one thing clear: if you think you can game the system using insider information, think again,' Inspector in Charge Eric Shen of the U.S. Postal Inspection Service Criminal Investigations Group said in a statement.
'Ross Haghighat and his associates thought they were above the law and colored outside the lines for financial gain, but yesterday's indictment proves no one is above the law,' Shen said. 'The U.S. Postal Inspection Service will not hesitate to pursue and bring to justice anyone who tries to corrupt the integrity of our financial markets.'
Prosecutors said in his position as a director on the board of Company-1, Ross Haghighat allegedly obtained material nonpublic inside information about its acquisition, including sensitive deal terms.
He then allegedly purchased securities, and tipped others — including Bruce Haghighat, Pearl, Sabzevari, and Roberge — for personal benefit 'with the expectation that they would purchase securities, which the defendants allegedly did,' prosecutors said.
If convicted, each defendant faces a maximum penalty of 25 years in prison on the securities fraud charge and 20 years in prison on each of the insider-trading charges.
If convicted of conspiracy, Ross Haghighat, Bruce Haghighat, and Pearl face a maximum penalty of 25 years in prison.
The U.S. Postal Inspection Service is investigating the case.
This is a developing story. Check back for updates as more information becomes available.
Download the FREE Boston 25 News app for breaking news alerts.
Follow Boston 25 News on Facebook and Twitter. | Watch Boston 25 News NOW
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
2 hours ago
- Yahoo
Omada Health IPO signals healthier market, avoids 'down-round' trend
The IPO market is starting to feel healthier. Omada Health, a 14-year-old company providing virtual care for chronic conditions like diabetes and hypertension between office visits, closed its first trading day on Friday at $23 a share, a 21% jump from the IPO price of $19. The IPO valued the company just above $1 billion (excluding employee options), a figure that's nearly identical to Omada's last private valuation of $1 billion set in its previous VC round. The debut is one of the first among recent IPOs that was not a so-called down-round. Many of the latest public listings, including Hinge, ServiceTitan, and Reddit, priced below their private market highs, though have faired well as public companies. For founder and CEO Sean Duffy, the successful public offering validates his decision to start a company that he believed the market desperately needed. In 2011, he dropped out of Harvard Medical School after realizing that chronic illness patients required more continuous support than the existing healthcare system delivered. Before the offering, he owned 4.1% of the company, according to Omada's offering document. Other significant shareholders included Revelation Partners (10.9%), US Venture Partners (9.9%), Andreessen Horowitz (9.6%), and FMR (9.3%). Duffy told TechCrunch that over his 14-year journey as a founder, he had many harrowing moments. "I didn't think our series A was going to come together because we were working on this commercial deal that didn't materialize, and that spooked one investor," he said. "As a young business, something tries to kill you every month," he continued. "And then as the business grows, it turns into like every quarter or six months, year, two years." One of the recent challenges for many digital health businesses is navigating the "collapse" of the market post-COVID boom. Omada steered through the turbulent times by seeking new, rising markets. It recently expanded its offerings to include diet management support for GLP-1 patients.
New York Post
2 hours ago
- New York Post
Trump orders FAA to remove supersonic flight restrictions: ‘Bold new chapter in aerospace innovation'
President Trump is boosting supersonic aviation in the United States. An executive order the commander in chief signed Friday directs the Federal Aviation Administration to repeal a 1973 rule prohibiting overland supersonic flight, establish new noise standards for aircraft and remove other regulations that get in the way of the development of high-speed planes. 'The United States stands at the threshold of a bold new chapter in aerospace innovation,' the president wrote in the order. Advertisement 'For more than 50 years, outdated and overly restrictive regulations have grounded the promise of supersonic flight over land, stifling American ingenuity, weakening our global competitiveness, and ceding leadership to foreign adversaries.' 3 'President Trump is Making Aviation Great Again,' the White House said of the his executive order. AFP via Getty Images Trump argued that advances in engineering and technology have now made supersonic air travel 'not just possible, but safe, sustainable, and commercially viable.' Advertisement 'This order begins a historic national effort to reestablish the United States as the undisputed leader in high-speed aviation,' the president declared. 'By updating obsolete standards and embracing the technologies of today and tomorrow, we will empower our engineers, entrepreneurs, and visionaries to deliver the next generation of air travel, which will be faster, quieter, safer, and more efficient than ever before.' Under current FAA rules, only military aircraft – flying in specially designated areas – are allowed to break the sound barrier over land. The 1973 ban on overland supersonic flight was primarily due to the disruptive impact of the sonic booms produced when aircraft exceed the speed of sound. 3 Boom Supersonic hopes to develop a commercially viable supersonic aircraft. AP Advertisement 3 The FAA banned supersonic flights over the United States in 1973, over noise concerns. Chad Robertson – However, new technology has enabled one aircraft maker, Boom Supersonic, to develop a plane that can cruise above Mach 1 without emitting a sonic boom. 'Supersonic is back, baby!' Boom Supersonic founder and CEO Blake Scholl wrote on X, noting that in January, his company's XB-1 aircraft became the first privately developed supersonic jet to break the sound barrier. 'And today…[Trump] broke the sound barrier…permanently!' he added. Advertisement Scholl argued that the ban on supersonic flight has 'crippled progress' in aviation for half a century, but with Trump's order in place, 'The supersonic race is on and a new era of commercial flight can begin.' 'By removing decades-old regulatory barriers and promoting cutting-edge supersonic technology, President Trump is Making Aviation Great Again,' the White House said in a statement.
Yahoo
2 hours ago
- Yahoo
Nucleus Genomics Launches Nucleus Embryo, Genetic Optimization Software Alongside Partnership with Genomic Prediction
Parents pursuing IVF now have a new level of choice to empower their family planning NEW YORK, June 4, 2025 /PRNewswire/ -- With U.S. birthrates plummeting and IVF on the rise, Nucleus Genomics today launched Nucleus Embryo, the first genetic optimization software that lets parents see and understand a complete genetic profile to select an embryo. "Before there's a heartbeat, there's DNA," said Kian Sadeghi, founder and CEO of Nucleus. "One file containing DNA and genetic markers can tell you more about your baby's future than any other test a doctor could possibly run at this stage. Most clinics stop at whether an embryo will develop. For many parents, that's not enough. Patients have long asked for more transparency from clinics, and Nucleus Embryo is an important step toward complete data ownership for parents planning their families." The software enables parents to analyze and compare up to 20 embryos across over 900 hereditary conditions and 40 additional analyses beyond basic viability, spanning cancers, chronic conditions, appearance, cognitive ability, mental health, and more. To widen access to the software, Nucleus will partner with Genomic Prediction, the first company to offer genome-wide screening on embryos. The partnership sets a new standard in genetic medicine, continuing Genomic Prediction's decade-long history of giving hopeful parents the best possible chance of implanting healthy embryos. The company's analyses focus on hereditary conditions, acting as the first line of defense against chronic and rare diseases. "As an organization, we are committed to supporting patients' rights to their DNA and any information that can aid in their family-building journey," said Kelly Ketterson, CEO of Genomic Prediction. "We have a legacy of innovation aimed at providing patients with access to the best scientific resources. Our partnership with Nucleus opens access to information our patients have requested and allows us to uphold our commitment to this legacy." Nucleus' partnership with Genomic Prediction reflects a growing shift in how parents think about genetics as a tool to give children the best possible start in life. A wide-ranging study of Americans found the majority accepted the use of genetic technology to choose embryos based on health and personality traits. Four in 10 parents would use genetic optimization as another tool to understand their future child's cognitive abilities. Most women undergo three to six IVF cycles before successfully having a baby, with each cycle costing up to $25,000. Many embryos are unviable within days of being fertilized, leaving parents with few to choose from. Facing high stakes, clinicians often recommend genetic testing to optimize a couple's chances of a healthy pregnancy. But these tests typically stop at a select number of hereditary conditions and chromosome count. Now, advanced genetic analysis from Nucleus gives parents a new window into the health and well-being of their future child. Nucleus Embryo provides a comprehensive genetic profile for each embryo, encompassing hereditary genetic diseases, like cystic fibrosis and hemochromatosis, alongside genetic measures of cognitive ability, mental health, and risk for chronic diseases. Wide access to genetic insights for embryos can also help extend lifespan from the earliest stages of life. While more than half of all deaths annually in the U.S. are attributed to chronic, age-related conditions — such as Alzheimer's disease, diabetes, cancer, and heart disease — research shows embryonic selection can materially help reduce disease risk for these conditions. "We celebrate health optimization and the pursuit of longevity in every other part of life via our focus on training, supplements, and sleep," Sadeghi said. "We all know health isn't just the absence of disease. It's the ability to understand our bodies and genetic makeup to reach our full potential. Now we can apply this principle to life's inception." About Nucleus Genomics Nucleus builds software for generational health. Inspired by the loss of his cousin who died of a rare — yet preventable — genetic disease, Nucleus founder and Thiel Fellow Kian Sadeghi left an Ivy League university to build a product that could have saved her life. Our advanced DNA health test and analysis takes the guesswork out of your health, whether it's perfecting your protocols, knowing your risk for cancer, or planning for a healthy family. Follow us on social media @nucleusgenomics. About Genomic Prediction Genomic Prediction, Inc. is the frontrunner in advanced embryo screening. Our proprietary LifeView platform is state-of-the-art technology that assesses embryos for genetic health aimed at improved IVF outcomes. The LifeView Embryo Health Score Test (EHS) offers insight into the likelihood of developing conditions driven by multiple genes. It tests for significant health issues, including cardiovascular disease, diabetes mellitus, certain cancers, and mental health conditions. The EHS results are derived from the same embryo sample used in the following PGT tests: PGT-A: Identifies chromosome abnormalities in embryos. PGT-A+: Pinpoints the origin (paternal, maternal, or embryonic) of chromosome abnormalities. PGT-M: Decreases the chances of passing on monogenic (single-gene) conditions. PGT-SR: Detects chromosome abnormalities and structural imbalances, providing clarity between normal and balanced chromosomes. View original content to download multimedia: SOURCE Nucleus
