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.
Follow @NicholasIovino
Subscribe to Closing Arguments
Sign up for new weekly newsletter Closing Arguments to get the latest about ongoing trials, major litigation and hot cases and rulings in courthouses around the U.S. and the world.
Additional Reads
-
EU gains trillions in revenue — and debt April 22, 2024 -
Alaska, Hawaiian Airlines April 17, 2024
-
-
Contributor-Test-Post-2024-04-12 April 12, 2024