By Jessica Dye

(Reuters) - The Securities Exchange Commission filed a civil complaint Tuesday against a retired hedge-fund investment consultant and market analyst who allegedly participated in an insider trading scheme involving Atlanta-based clothing marketer Carter's Inc.

Dennis Rosenberg, 70, was able to trade in advance of marketing-moving news from Carter's based on tips received from a former executive at the company between 2005 and 2010, according to the complaint in federal court in Georgia.

Rosenberg passed along tips to investment advisers at two hedge funds, who also traded on the information, the complaint said.

The tips netted Rosenberg approximately $500,000 in ill-gotten gains, losses avoided and consulting fees based on tips to a hedge-fund client, the complaint said. The individuals who received the tips made about $2 million in combined losses avoided and profits, according to the complaint.

Rosenberg, who has not admitted or denied the allegations, has agreed to hand over $500,000, plus $108,000 in interest, the SEC said. A decision on civil monetary penalties will be made at a later date, according to the SEC.

A lawyer for Rosenberg declined to comment on the case.

Rosenberg is the second insider-trading case by the SEC over the alleged Carter's scheme. In August 2012, the SEC sued the company's former vice president of investor relations, Eric Martin, who agreed to a consent order in September barring him from serving as an officer or director at a public company.

Martin also pleaded guilty in December to a criminal charge for tipping others to non-public information while employed at Carter's, and is currently awaiting sentencing, according to the SEC.

Another former vice president at Carter's, Richard Posey, pleaded guilty in June to conspiracy to commit securities fraud in connection with alleged insider-trading, according to the complaint.

Carter's, a publicly listed company, markets apparel for babies and young children. In 2005, it acquired OshKosh B'Gosh Inc, a well-known children's clothing brand. The case is Securities and Exchange Commission v. Rosenberg, U. S. District Court for the Northern District of Georgia, No. 13-3559.

(Reporting by Jessica Dye in New York; Editing by Lisa Shumaker)

About News.net

Publishing Services International Limited (PSIL) is the publisher and operator of a worldwide network of online news sites dedicated to delivering fair, accurate and relevant reporting from a variety of the world’s most trusted sources – from the biggest cities to the smallest towns.

We deliver positive and powerful messages to our readers, providing up‑to‑the‑second news that matters to the individual.

Our promise is to serve communities and individuals worldwide, delivering information that hasn’t always been available to them. We will give them back a voice – a voice that’s empowering because it is theirs – and provide a platform to communicate between themselves and the world.

We believe people are not just generic demographics; they are individuals with their own preferences and curiosities. We are about understanding these individuals, listening to them, and serving them.

We are the new pioneering spirit of news – we’re not talking to everyone, we’re talking with every one.

If you want your news, your voice, your way, on your time – we’ve got news for you.

 

FAQs

Email

If you have any questions or concerns please email us on support@news.net

Phone

  • Australia, Toll Free 1-800-983-421
  • Hong Kong, Toll Free 800-906-187
  • Singapore, Toll Free 800-852-3871
  • USA/Canada, Toll Free 1-800-830-4132

Advertise With Us

Interested in being awesome?
Contact us by email or phone.

Cancel