The 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 said.
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…Continue Reading