Oct 29 The U.S. Securities Exchange Commission
filed a civil complaint Tuesday against a retired hedge-fund
investment consultant and market analyst who allegedly
participated in an insider trading scheme involving
Atlanta-based clothing marketer Carter's Inc.
Dennis Rosenberg, 70, was able to trade in advance of
marketing-moving news from Carter's based on tips received from
a former executive at the company between 2005 and 2010,
according to the complaint in federal court in Georgia.
Rosenberg passed along tips to investment advisers at two
hedge funds, who also traded on the information, the complaint
The tips netted Rosenberg approximately $500,000 in
ill-gotten gains, losses avoided and consulting fees based on
tips to a hedge-fund client, the complaint said. The individuals
who received the tips made about $2 million in combined losses
avoided and profits, according to the complaint.
Rosenberg, who has not admitted or denied the allegations,
has agreed to hand over $500,000, plus $108,000 in interest, the
SEC said. A decision on civil monetary penalties will be made at
a later date, according to the SEC.
A lawyer for Rosenberg declined to comment on the case.
Rosenberg is the second insider-trading case by the SEC over
the alleged Carter's scheme. In August 2012, the SEC sued the
company's former vice president of investor relations, Eric
Martin, who agreed to a consent order in September barring him
from serving as an officer or director at a public company.
Martin also pleaded guilty in December to a criminal charge
for tipping others to non-public information while employed at
Carter's, and is currently awaiting sentencing, according to the
Another former vice president at Carter's, Richard Posey,
pleaded guilty in June to conspiracy to commit securities fraud
in connection with alleged insider-trading, according to the
Carter's, a publicly listed company, markets apparel for
babies and young children. In 2005, it acquired OshKosh B'Gosh
Inc, a well-known children's clothing brand.
The case is Securities and Exchange Commission v. Rosenberg,
U.S. District Court for the Northern District of Georgia, No.