Four sentenced in insider trading scheme tied to $3.2B pharma merger

Four people have been sentenced for their roles in an insider trading scheme tied to a $3.2 billion pharmaceutical merger that generated more than $600,000 in illicit profits, the Justice Department announced.

Rouzbeh Ross Haghighat, 62, of Massachusetts, received the longest sentence — 40 months in prison — after being convicted in December 2025 of one count of securities fraud, 16 counts of insider trading and two counts of conspiracy, according to court documents. Kirstyn Pearl, 36, of Puerto Rico, was sentenced to six months in prison after being convicted of one count of securities fraud, one count of insider trading and one count of conspiracy. Seyedfarbod “Fabio” Sabzevari, 31, of California, received 14 months, and James Roberge, 71, of Massachusetts, was sentenced to two months. Two individuals were sentenced yesterday, and two others had previously been sentenced May 4.

Prosecutors said Haghighat served on the board of directors of a Seattle-based biopharmaceutical company. In May 2023, while holding that position, he obtained confidential details about a proposed acquisition of the company by another pharmaceutical firm — including sensitive deal terms — and used that information to trade securities and tip off associates, court documents show.

Haghighat then purchased securities and tipped off others about the deal — including Pearl, Sabzevari and Roberge — so they would purchase securities of the company, prosecutors said. In May 2023, the acquiring company made a confidential proposal to purchase the Seattle-based firm at a price above the then-current market value. The companies later negotiated an agreement, which was announced in June 2023, causing the share price to spike. Collectively, the defendants profited more than $600,000 from purchases of the company’s securities based on insider information.

“Rouzbeh Ross Haghighat abused his position as a board member of a publicly traded company to exploit his insider knowledge of an upcoming acquisition,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division. “Insider trading undermines fairness in the economy and American investors.”

Eric Shen, inspector in charge of the U.S. Postal Inspection Service’s Criminal Investigations Group, said the case demonstrated that no one is above the law. “Ross Haghighat and his associates thought they were above the law and colored outside the lines for financial gain, but yesterday’s sentencing proves no one is above the law,” Shen said.

The U.S. Postal Inspection Service investigated the case. Trial Attorney Tamara Livshiz of the Criminal Division’s Fraud Section prosecuted it, with substantial assistance from Assistant Chief Laura Connelly.

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