A former executive with Atlanta-based children's apparel maker Carter's has been accused by federal securities regulators of insider trading.
The Securities and Exchange Commission sued Eric M. Martin, Carter's former vice president of investor relations, Thursday, alleging he avoided losses or made profits of more than $170,000 based on 37 improper trades.
The suit is the latest in a string of federal civil or criminal actions against former Carter's insiders over the past few years.
Martin, 42, of Roswell allegedly traded with information that was not available to the public and bought or sold stock without clearance during prohibited periods before eight quarterly earnings releases. The trades allegedly occurred from January 2007 to March 2009, when Martin was terminated by the company.
The SEC said Martin made certain trades from his wife's accounts to conceal his activities, according to the civil complaint. The complaint seeks, among other things, civil money penalties and disgorgement of proceeds from Martin.
Eric Martin did not immediately return messages. Robin Martin, his wife, declined comment.
A Carter's official who could comment about the case was not immediately available, a representative said.
Not all of the allegedly improper trades resulted in Martin making money or avoiding losses, the SEC said.
The U.S. attorney's office opened an inquiry into Carter's in 2009, and the company was required to restate its financial results for several years.
The investigations have led to criminal charges against former President Joseph Pacifico and former Vice President of Sales Joseph Elles.
Previously, Carter's has said the SEC entered into a nonprosecution agreement with the company and Carter's does not expect further action would be taken against it.
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