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.
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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.