Pair Fined for Ross Stores Insider-Trading Scheme

SAN FRANCISCO (CN) – Two men that made $802,000 using inside information to trade Ross Stores stock must pay fines for their ill-gotten gains, a federal judge ruled Monday.
The SEC sued Ammar Akbari, Ranjan Mendosa and four others in June 2014 for their roles in an insider-trading scheme.
The SEC says lead defendant Saleem Khan shared inside tips on Ross Stores stock with Akbari and Mendosa. Khan got the tips from his friend and co-defendant Roshanlal Chaganlal, who worked as finance department director at Ross headquarters in Dublin, California, according to the SEC.
Khan realized profits of $5.4 million in his own account and $6 million in his brother-in-law’s account which he also controlled, the lawsuit claimed.
Akbari gained $800,000 in profits from the insider-trading scheme while Mendosa made off with $2,000.
In a Sept. 28 ruling, U.S. District Judge Haywood S. Gilliam ordered Akbari permanently restrained and enjoined from using any means to violate the Securities and Exchange Act. Akbari was also ordered to pay $614,376 to the SEC.
Mendosa was ordered to pay $2,202 for his role in the scheme.
Co-defendants Khan and Chaganlal still face insider-trading charges and have not been fined.

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