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

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


U.S. Trust's Beard: The Rapid Growth of the Art Lending Industry

Oct 7 2016 | 10:55pm ET

Alternative investment managers have emerged as some of the most significant art...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...