Ex-Hedge Fund Manager To Prison For Carter’s Trades

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.


In Depth

Q&A: Schroders’ Forest Discusses Multi-Asset Investments On Eve Of U.S. Launch

Jul 17 2014 | 8:05am ET

Global investment manager Schroders has $446 billion in assets under management, $...

Lifestyle

Einhorns Busts At WSOP, Finishes In 173rd

Jul 15 2014 | 10:48am ET

Greenlight Capital founder David Einhorn’s World Series of Poker won’t end at...

Guest Contributor

Common Risk Parity Misperceptions

Jul 16 2014 | 11:02am ET

Over the past few years, risk parity has become a component of most investors’...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note