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: Neil Azous Talks Global Macro Investing

Nov 24 2014 | 12:41pm ET

Neil Azous is the founder and managing member of Rareview Macro, an advisory firm...

Lifestyle

Griffin Selling Chicago Apartment

Nov 26 2014 | 11:40am ET

Citadel Investment Group’s Kenneth Griffin is making clear to his estranged wife...

Guest Contributor

Why The Big Money Is Going To Europe

Nov 14 2014 | 6:03am ET

Peer-to-peer lending was invented with the individual investor in mind. But despite...

 

Sponsored Content

    For Hedge Funds, Mastering Data Is Key To Success

    Nov 4 2014 | 9:45am ET

    Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

November 2014 Cover

Building a better market

Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.