June 13, 2014

The SEC charged four Northern California residents with insider trading in Ross Stores stock options based on nonpublic information about monthly sales results leaked by one of the retailer’s employees.  The agency alleged that Saleem Khan was routinely tipped by his friend Roshanlal Chaganlal, who was a director in the Ross Stores finance department and used confidential information to illegally trade on more than 40 occasions ahead of the company’s public release of financial results.  Khan also tipped his work colleagues Ranjan Mendonsa and Ammar Akbari so they too could trade in Ross stock options based on the nonpublic information.  The insider trading resulted in collective profits of more than $12M.  SEC

Tagged in: Insider Trading, Securities Fraud,