A New York-based hedge fund employee has been charged with trading on inside information about the children's clothing company Carter's Inc, the U.S. Securities and Exchange Commission (SEC) said on Thursday. Mark Megalli, an investment professional with the hedge fund Level Global Investors LP, obtained inside information that helped his firm avoid about $2.4 million in losses and make $853,655 in ill-gotten profits, the SEC said in a statement. Megalli received the information on which he traded from a former vice president of investor relations at Carter's, Eric Martin, who had left to form his own consulting firm but maintained contacts at the Atlanta-based company. The SEC charged Martin with insider trading in August. "The information was hot enough that Megalli sometimes conducted the trades while he was still on the phone with his source," said William Hicks, an associate regional director in the SEC's Atlanta office. The U.S. Attorney's Office for the Northern District
↧