Former hedge fund consultant Dennis Rosenberg has been charged by regulators of insider trading regarding children’s clothing company, Carter’s.
The SEC announced in a statement Tuesday that Rosenberg has been ordered to disgorge the approximate $500,000 he made from the illegal trades and pay an additional $108,000 fine.
The SEC alleged that Rosenberg passed insider tips he received from a Carter’s executive to two undisclosed hedge fund managers. Rosenberg, a retired hedge fund investment consultant and market analyst who had previously covered the stock of Carter's, was also accused of trading in advance of the clothing chain’s public disclosure regarding its earnings which earned him approximately $500,000 in illegal profits.
The two hedge fund managers earned a total of $2 million using Rosenberg’s tips.