Sunday, 28 August 2016
Last updated 1 day ago
Jul 9 2014 | 9:26am ET
A former hedge fund manager will soon be in prison with two former executives of the company whose shares he allegedly insider-traded in prison.
Mark Megalli was sentenced to one year and one day in prison yesterday, and ordered to pay $50,000, for trading shares of Carter’s Inc. based on tips he received from a former vice president at the children’s clothing company. Megalli, who worked at Level Global Investors—shuttered in 2011 as a result of an unrelated insider-trading scandal—pleaded guilty to fraud charges last year.
U.S. District Judge Richard Story in Atlanta also sent Megalli’s tipster, Eric Martin, to prison for two years. Martin’s source at Carter’s after his departure, former vice president of operations Richard Posey, got a year and three months.
Megalli’s lawyer said his client “is fully satisfied with and accepting of the outcome.”
Prosecutors say that Megalli traded on tips from Martin in 2009 and 2010, earning level global between $2.5 million and $7 million.