Latest news with #Company-1
Yahoo
23-05-2025
- Business
- Yahoo
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 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
Yahoo
06-02-2025
- Business
- Yahoo
New Jersey trucking company owner charged in $4.6M overbilling scheme
A New Jersey man took part in a multiyear conspiracy to overbill Williams-Sonoma Inc. and a transportation and logistics company for trucking services to the tune of over $4 million, according to the U.S. attorney's office for the District of New Jersey. Jose Pena, 46, of Monroe Township, is charged with conspiracy to commit wire fraud, acting U.S. Attorney Vikas Khanna announced in a news release. Pena owned and operated a carrier that subcontracted with a national transportation and logistics company, referred to only as 'Company-1' in the complaint, to deliver for Williams-Sonoma (NYSE: WSM) out of the home goods company's Cranbury, New Jersey, distribution center. From mid-2018 through late 2020, he and others conspired to overbill Williams-Sonoma and Company-1 by more than $3.6 million in deliveries and services that Pena and his company did not perform, the U.S. attorney stated in the Wednesday release. Pena paid the co-conspirators with kickbacks including money, a Rolex watch and an SUV, authorities said. An internal audit uncovered the fraud, but after the companies stopped contracting with Pena, he contracted directly with Williams-Sonoma in September 2021 after hiding his interest in another carrier, according to the U.S. attorney's office. He and some of his co-conspirators then overbilled the company through June 2024 for 'fabricated deliveries,' creating losses for Williams-Sonoma of about $1 million, authorities allege. Co-conspirators Raymond DeLeon and Cintia Elaxcar, who had both worked at Company-1, pleaded guilty in the U.S. District Court for the District of New Jersey in January to a charge of conspiracy to commit wire fraud for their roles in the scheme. DeLeon, 38, of Ridgefield Park, New Jersey, received more than $200,000 in kickbacks, and Elaxcar, 40, of Perth Amboy, New Jersey, got more than $430,000. DeLeon was an operations general manager at Company-1, and Elaxcar was a billing and dispatch manager there. Both played a role in having fraudulent billing requests submitted to Williams-Sonoma and Company-1, authorities said. Conspiracy to commit wire fraud carries a penalty of up to 20 years in prison, as well as a fine of up to $250,000 or twice the gain or loss from the crime, whichever is greater. FreightWaves has reached out to an attorney for Pena. The U.S. attorney's office said Thursday that Pena has not yet entered a plea. The post New Jersey trucking company owner charged in $4.6M overbilling scheme appeared first on FreightWaves.
