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by Mike Caswell

A federal judge in New Jersey has revoked the bond of Seyedfarbod Sabzevari, a California man recently convicted of insider trading in Vancouver-Seattle biopharmaceutical listing Chinook Therapeutics Inc., after he failed a drug test and did not appear for subsequent tests. The testing was one of his conditions of release after his arrest on May 28, 2025.

Prosecutors claimed that Mr. Sabzevari, 31, was part of a group that realized $600,000 in gains from a $3.2-billion takeover offer made by Novartis AG in 2023. (All figures are in U.S. dollars.) Mr. Sabzevari, who also goes by the name "Fabio," bought options and shares in Chinook in the days and weeks before the deal became public, the government says. A jury convicted him and others on Dec. 17, 2025, after a 13-day trial and he awaits sentencing.

The revocation of Mr. Sabzevari's bond is contained in an order of detention entered on April 29, 2026. The order is brief and to the point -- the judge ordered Mr. Sabzevari to be immediately taken into custody by the U.S. Marshals Service. He had previously been free on conditions that included substance abuse testing as directed by pretrial services officers.

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