Department of
Justice and the Securities & Exchange Commission Target Apparel-Industry
Insider Trading Ring
This week we
read an interesting article on the Forbes website regarding insider trading
that may have occurred in the fashion industry.
Obviously these wrong doings are not exclusive to our industry. Unfortunately, there are dishonest people in
all industries.
The following
two quotes are from a Forbes article dated 12/03/2013 by Nathan Vardi.
“For more
than five years, Eric Martin made a habit of feeding material, non-public
information about Carter’s, the Atlanta manufacturer of babies and children’s
apparel, to hedge funds and a consultant who tipped off hedge funds. As the
director, and later, vice-president, of Carter’s investor relations department,
Martin was in a good position to know about earnings results, a corporate
merger and even a financial restatement, before the company publicly released
the information. Even after Carter’s terminated Martin, he continued to get his
hands on market-moving information about Carter’s and provided it to hedge fund
investors.”
“The Martin
case seems to indicate that the relatively small and clubby apparel industry
has seen its fair share of insider trading, making it a prime target for the
Department of Justice and the Securities & Exchange Commission, which have
both been aggressively pursuing insider-trading cases involving hedge funds.”
You can view
the rest of the Forbes article at http://www.forbes.com/sites/nathanvardi/2013/12/03/the-apparel-insider-trading-ring/
If you know
of any wrong doing in the garment industry, you can contact the SEC at www.SEC.gov
Thank you for taking the time to read our apparel industry blog post. We hope that you have found this news to be informative. If you have comments or questions, please add your thoughts in the discussion area below.