Dublin Man Sentenced For Insider Trading Involving Ross Stores

DUBLIN, CA — A 55-year-old Dublin man who pleaded guilty earlier this year to multiple felony charges involving insider trading using proprietary information from Pleasanton-based Ross Stores Inc. was sentenced Friday to 30 months in prison.

According to his Jan. 31 plea agreement, Saleem M. Khan admitted that from July 2009 to October 2012 he was getting insider information from a friend about the sales and financial performance of the discount-clothing retailer then headquartered in Pleasanton.

Khan used the non-public information to buy and sell securities on the NASDAQ stock exchange ahead of Ross's public announcements of sales performance figures, and made in excess of $3.5 million in illegal profits. At Friday's sentencing, the government said Khan may have made gains as high as $8.2 million.

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

A hearing is scheduled for Oct. 21 to determine whether, and to what extent, Khan should be ordered to pay restitution to Ross. Khan may also be ordered to pay Ross's attorney’s fees.

Khan will begin serving his prison term later this year, on Nov. 4.