By Dow Jones Business News,
June 13, 2014, 05:10:00 PM EDT
By Maria Armental
Four northern California residents were charged with making more than $12 million through insider trading in Ross
Stores Inc. stock options based on privileged information, the U.S. Securities and Exchange Commission said Friday.
The complaint, filed in federal court in San Francisco, alleges Saleem Khan was routinely leaked monthly sales by
his friend Roshanlal Chaganlal, who at the time headed the retailer's finance department, and used that information to
trade under his brokerage account, his brother-in-law's and an account belonging to another acquaintance.
The trading resulted in collective profits of more than $12 million, the SEC said.
Mr. Kahn, the complaint alleges, also tipped off work colleagues Ranjan Mendonsa and Ammar Akbari.
Messrs. Khan and Akbari couldn't be immediately reached for comment. A woman who answered Mr. Mendonsa's home
telephone said he had no comment. A spokeswoman for Ross wasn't immediately available.
The trades in question happened between August 2009 and December 2012, when Mr. Chaganlal was terminated, the SEC
The SEC charges Mr. Chaganlal gave Mr. Khan $17,000 as part of the scheme using the brother-in-law's account and
charges Mr. Chaganlal and Mr. Khan tried to cover up the exchange by using two cashier's checks for $8,500 bought under
the name of Mr. Chaganlal's wife, who goes by a different surname.
In all, Mr. Khan is alleged to have made $5.4 million in profits in his account, and $6 million in his brother-in-
law's account. His work supervisor, Mr. Mendonsa, is alleged to have made about $800,000 and Mr. Akbari about $2,000.
Mr. Khan's brother-in-law, Shadid Khan, and acquaintance Michael Koza have agreed to settle the matter by paying
the court profits remaining in their accounts, $240,741 and $31,713, respectively.
Separately, the SEC complaint alleges Mr. Khan made some $450,000 ahead of Oracle Corp.'s 2012 acquisition of Taleo
Corp. by buying a large number of shares six days before the merger was announced based on privileged information he
received from an insider he knew at Oracle. Mr. Khan had never traded in Taleo securities before, according to the SEC.
The investigation continues.
Write to Maria Armental at firstname.lastname@example.org
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
Copyright (c) 2014 Dow Jones & Company, Inc.
This article appears in: