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by Mike Caswell

Sernova Biotherapeutics Inc.'s recently appointed chairman, Ross Haghighat, has been charged for insider trading in the United States. Federal prosecutors in New Jersey claim that Mr. Haghighat was part of a scheme that generated $600,000 in profits on a takeover offer for a Seattle Nasdaq listing in 2023. (All figures are in U.S. dollars.) According to the government, Mr. Haghighat learned about the deal, which involved a $3.2-billion takeover, through board meetings.

The charges do not involve Sernova, but the timing will not be welcome -- the case comes just months after the company appointed Mr. Haghighat as its chairman. In hiring Mr. Haghighat, Sernova cited his "proven track record in driving successful innovations, strategic growth and mergers and acquisitions." The appointment "underscores our commitment to fulfilling our mission of bringing solutions to patients in need," said president Jonathan Rigby.

The charges against Mr. Haghighat, 61, were unveiled by prosecutors on Friday, May 23. The government has charged him with one count of securities fraud, 16 counts of insider trading and two counts of conspiracy. The maximum possible jail term is 25 years.

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