A second former Carter's executive has pleaded guilty to conspiracy to commit securities fraud in connection with a multi-million dollar insider trading conspiracy involving the retailer's stock.

Richard Posey, who was a vice president of operations for various Carter's brands and divisions, as well as VP of operations for its wholesale business, admitted that he disclosed inside information about Carter's upcoming earnings releases and other developments to Eric Martin, the company's former head of investor relations. 

Martin was convicted in December last year of tipping a former Wall Street analyst during his employment at Carter's between 2005-2009.

"Corporate insiders who disclose company secrets are the enablers who make illegal insider trading possible," said US attorney Sally Quillian Yates.

"Insider trading undermines faith in the nation's stock markets. Public company executives and employees should be on notice that when it comes to material, non-public information, they are required to play by the same rules as everyone else."