SEC charges four in Ross Stores insider trading scheme

Dublin, Calif. – The Securities and Exchange Commission (SEC) has charged four residents of Northern California 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 SEC alleges that Saleem Khan was routinely tipped by his friend Roshanlal Chaganlal, who was a director in the finance department at Ross headquarters.



The SEC says Khan used the confidential information to illegally trade on more than 40 occasions ahead of the company’s public release of financial results. Besides trading in his own brokerage account, Khan traded in his brother-in-law’s account as well as an account belonging to another acquaintance. Khan also tipped his work colleagues Ranjan Mendonsa and Ammar Akbari so they could trade in Ross stock options based on the nonpublic information.



The insider trading resulted in collective profits of more than $12 million. According to the SEC, the illegal activity occurred from 2009-2012, when Chaganlal was fired from his position at Ross Stores.



“Khan and Chaganlal took advantage of confidential company data to systematically trade in Ross securities and reap millions of dollars in profits,” said Jina L. Choi, director of the SEC’s San Francisco Regional Office. “Even when insider traders try to conceal their profits and kickbacks by using other accounts and intermediaries, we’re committed to piecing together these widespread schemes and catching the perpetrators.”