New York-based hedge fund manager Mark Megalli has been charged with insider trading regarding children’s clothing company Carter’s.
The Securities and Exchange Commission alleged that Megalli, a trader at Level Global Investors, obtained confidential information that helped the hedge fund firm avoid $2.4 million in losses and make $853,655 in illegal profits by trading shared ahead of positive or negative news.
The SEC complaint alleged Megalli, who allegedly received inside information from former Carter's vice president of investor relations Eric Martin, began trading on information he received about the clothing company shortly after joining Level Global in August 2009.
Other individuals who the SEC has charged in connection with its insider trading investigation at Carter’s include the company’s former executive vice president Joseph Elles and former president Joseph Pacifico.
Former Level Global hedge fund manager Anthony Chiasson was sentenced earlier this year to six and a half years in prison after a jury found him guilty of illegally trading technology stocks.