A federal grand jury indicted a New Jersey hedge fund manager for insider trading involving the stock of Carter’s Inc., the Atlanta-based clothing maker.
“The charges against [Steven E.] Slawson reflect that for over five years, Slawson obtained a sneak preview of Carter’s not-yet-released quarterly and annual financial results and other confidential internal information,” Sally Quillian Yates, the U.S. attorney in Atlanta, said in a statement. “He is charged with buying and selling tens of thousands of shares of Carter’s stock ahead of the news to make illegal profits in the stock market.”
Todd Harrison of New York City, Slawson’s attorney, said his client is completely innocent and looking forward to proving that at the trial.
Slawson, 67, was the co-founder of Titan Capital Management. Beginning in early 2005, and continuing through about July 2010, Slawson is alleged to have obtained inside information about Carter’s quarterly and annual financial results and other events in advance of the public announcement. Slawson allegedly received the information from a consultant and Carter’s employees.
Eric M. Martin, 44, of Roswell, a former head of Carter’s investor relations, pleaded guilty to conspiracy in 2012. Also, Richard T. Posey, 53, of Duluth pleaded guilty to conspiracy to commit securities fraud.
Mark Megalli, 42, of New York, pleaded guilty to conspiracy to commit securities fraud related to trades that Megalli executed in Carter’s securities on behalf of multibillion dollar New York hedge fund Level Global Investors, based on inside information that he received from Martin.
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