Politics & Government

Roswell Man Indicted on Insider Trading Charges

The former head of investor relations for a major children's clothing company was accused of using non-public information for personal gain.

A Roswell man who formerly headed investor relations for a major children's clothing company was indicted on conspiracy, securities and wire fraud in multi-state insider trading schemes.

Eric M. Martin, 42, of Roswell, former head of investor relations for Carter’s Inc., was charged by a federal grand jury today in connection with multi-year, multi-state insider trading schemes primarily involving Carter’s stock.

The indictment alleges that, during Martin’s employment with Carter’s between 2005 and 2009, he traded in Carter’s stock based on material, non-public information about the company’s quarterly and annual financial results. It claims he tipped a former Wall Street analyst about this and other non-public information in advance of Carter’s public announcement of the information.

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The indictment charges Martin with one count of conspiracy, and with multiple counts of securities fraud and wire fraud. The conspiracy and securities fraud charges against Martin each carry a maximum sentence of 25 years in prison and a fine of up to $250,000.  The wire fraud charges each carry a maximum sentence of 20 years in prison and a fine of up to $250,000. 

 This case is being investigated by Special Agents of the FBI. The Atlanta Regional Office of the SEC has conducted a separate investigation of possible civil violations of the U.S. securities laws, and on Aug. 22, the SEC filed a civil enforcement action against Martin for insider trading.  That case remains pending.

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