Dublin Man Sentenced To 30 Months For Insider Trading

Discussion in 'Wall St. News' started by dealmaker, Aug 5, 2019.

  1. dealmaker

    dealmaker

    Dublin Man Sentenced To 30 Months For Insider Trading
    Bay City News Service

    Published 2:05 am PDT, Sunday, August 4, 2019
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    Photo: NewQuest Properties
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    A 55-year-old Dublin man has been sentenced to 30 months in prison for felony insider trading related to using proprietary information from Dublin-based Ross Stores Inc. to gain as much as $8.2 million during

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    OAKLAND (BCN)

    A 55-year-old Dublin man has been sentenced to 30 months in prison for felony insider trading related to using proprietary information from Dublin-based Ross Stores Inc. to gain as much as $8.2 million during 2011 and 2012, the U.S. Department of Justice said late Friday.

    In January, Saleem M. Khan pleaded guilty in U.S. District Court in Oakland to nine counts of securities fraud and one count of conspiracy to commit securities fraud.

    RELATED: Investment adviser gets 20-year sentence in fraud case

    The charges stemmed from a scheme in which investigators said Khan received sales and financial information from a friend who at the time worked in Ross's finance department. Officials said Khan used the confidential information to illegally buy and sell securities on the NASDAQ stock exchange ahead of Ross's public announcements of sales performance figures.

    In addition to the prison term, U.S. District Court Judge Haywood Gilliam sentenced Khan to a two-year period of supervised release.
     
  2. El_Cubano

    El_Cubano

    I see nothing about a fine or giving money back.

    Sounds like a good trade off to me
     
    ironchef likes this.
  3. ironchef

    ironchef

    I was wondering about the same thing.
     
  4. Overnight

    Overnight

    So we (taxpayers) get to pay for all his needs for 2 1/2 years, and when he is released, he can retire on his fat illegally-gotten gains. Whatever happened to quartering? Darn P.C. justice system. :)
     
  5. dealmaker

    dealmaker

    Above was the criminal end of the stick, SEC had already disgorged the illicit gains.....

    “The final judgment against Khan imposes a permanent injunction against future violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5, and orders Khan to pay $7,493,000 in disgorgement of illicit trading profits, $7,493,000 in penalties, and $847,147 in prejudgment interest.”

    https://www.sec.gov/litigation/litreleases/2016/lr23649.htm
     
    Overnight and vanzandt like this.
  6. Pekelo

    Pekelo

    What did the person who worked for ROSS get? Nothing? I assume Khan paid her off good.

    Is providing insider info illegal? Or just trading on it?
     
    Last edited: Aug 6, 2019
  7. dealmaker

    dealmaker

  8. dealmaker

    dealmaker

  9. Overnight

    Overnight

    Ahh, the article neglected to mention that.