SEC Charges Ex-Carter's Executive with Fraud

RetailReuters

A former sales executive at clothing marketer Carter's committed financial fraud by manipulating the amount of discounts granted to one of the company's largest customers, U.S. securities regulators alleged in a civil lawsuit.

The U.S. Securities and Exchange Commission on Monday accused Joseph Elles, a former executive vice president at Carter's, of concealing the discounts from the company's accountants, the lawsuit said.

Continue Reading Below

Elles's attorney was not immediately available to comment.

Carter's entered into a non-prosecution agreement with the SEC and will not be charged with any violations of federal securities laws, regulators said in a statement.

That agreement reflects Carter's "exemplary and extensive cooperation" in the investigation, the SEC said.

Carter's did not immediately respond to a request for a comment.

What do you think?

Click the button below to comment on this article.