Two former executives for Carter's Inc. have learned their fate for their involvement in insider trading of the company's stock. Carter's Inc. is a children's clothing company based in Atlanta.
Eric M. Martin and Richard T. Posey were sentenced to federal prison. Also sentenced to federal prison was New York portfolio manager Mark Megalli.
Prosecutors say Martin and Posey made illegal trades for years. The trades were worth $15 million. Prosecutors say the stock was based on nonpublic information. Martin and Posey pleaded guilty to sharing the information with others. Megalli is accused of trading on that information.
Martin was sentenced to two years, Megalli was sentenced a year and Posey was given 15 months.