US: Ex-Carter's exec pleads guilty to insider trading
The former head of investor relations for children's wear company Carter's Inc faces up to 25 years in prison and a fine of up to $250,000 after pleading guilty to an insider trading conspiracy.
Eric Martin was convicted of tipping a former Wall Street analyst about Carter's quarterly and annual financial results and other non-public information before the information was announced publicly. The abuses took place between 2005 and 2009.
The disclosed material included non-public information ahead of Carter's May 2005 acquisition of competitor Oshkosh B'Gosh.
Martin also admitted he is responsible for illegal insider trading gains and losses avoided resulting from the conspiracy, his own trading, and relevant conduct between $2.5m and $7m.
"Martin, as a corporate executive and leader at Carter's Inc, betrayed the trust bestowed upon him and attempted to enrich his bank account and others by engaging in insider trading using financial data that he was entrusted with safeguarding," said Mark Giuliano, special agent in charge at the FBI Atlanta Field Office.
A federal grand jury indicted Martin on 7 November on one count of conspiracy, seven counts of securities fraud, and three counts of wire fraud. A date for sentencing has not been set.
A separate Securities and Exchange Commission civil enforcement action against Martin is still pending.
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