Former VPs at Carter's among 3 sentenced to federal prison in insider trading case

Associated Press

Two former executives for Atlanta-based Carter's Inc. and a portfolio manager for a New York hedge fund have been sentenced to federal prison after they pleaded guilty in a case involving insider trading of the children's clothing company's stock.

Eric M. Martin and Richard T. Posey, both former Carter's vice presidents, were sentenced Tuesday in U.S. District Court in Atlanta. Prosecutors say the men for years traded Carter's stock based on nonpublic information about upcoming earnings reports and shared that information with others. Also sentenced was Mark Megalli, a New York portfolio manager accused of trading on that information.

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Prosecutors say the men made illegal trades worth $15 million.

Martin was sentenced to two years in prison, while Posey's sentence was for 15 months. Megalli got a year in prison.