Source: Federal Bureau of Investigation (FBI) State Crime News
LOS ANGELES – A man from the Brentwood neighborhood of Los Angeles was sentenced today to 24 months in federal prison for his role in an insider trading scheme that netted more than $650,000 in illicit profits.
Shahriyar Bolandian, 36, was sentenced by United States District Judge Terry J. Hatter Jr. to 24 months in federal prison. A forfeiture order will be imposed at a later date.
At the conclusion of a five-day trial, a jury in April 2024 found Bolandian guilty of six counts of insider trading.
“This defendant – now a convicted felon – illegally traded on inside information to enrich himself and others,” said United States Attorney Martin Estrada. “All those who seek to get rich by manipulating the financial markets and taking advantage of others should think again – there will be consequences for this misconduct.”
In 2012 and 2013, Bolandian received material non-public information about two upcoming corporate acquisitions by publicly traded companies. Bolandian then used the inside information to trade in advance of the public announcements of Integrated Device Technology Inc.’s April 2012 planned acquisition of PLX Technology Inc., and Salesforce.com Inc.’s June 2013 acquisition of ExactTarget Inc.
As a result of his illegal trades, Bolandian’s personal share of the scheme’s illicit proceeds was $450,000, which he used, among other things, to cover previous trading losses and repay loans to family and friends.
The United States Securities and Exchange Commission in August 2015 filed a civil complaint against Bolandian and others in connection with the scheme. That litigation remains pending.
Judge Hatter today also sentenced Kevan Sadigh, 37, formerly of Encino and now a Miami resident, to two years of probation and ordered forfeiture in the amount of $36,684 and a money judgment in the amount of $206,525. In a separate, six-day trial, a jury in July 2024 found Sadigh guilty of seven counts of insider trading. Sadigh’s personal share of the illicit proceeds was approximately $200,000.
The Corporate and Securities Fraud Strike Force is designed to expand and prioritize complex corporate and securities fraud investigations, some of which involves corporate executives and other individuals involved in criminal conduct. Members of the Strike Force examine accounting fraud, insider trading, and other matters that directly impact the financial system and trading markets.
The FBI investigated this matter.
Assistant United States Attorneys Andrew M. Roach of the General Crimes Section and Solomon D. Kim of the Major Frauds Section, and Trial Attorney Della Sentilles of the Justice Department’s Criminal Division’s Fraud Section prosecuted this case.