New York (HedgeCo.Net) – The Securities and Exchange Commission filed insider trading charges against a New Jersey-based hedge fund manager who allegedly used material, nonpublic information to trade in advance of market-moving news concerning Carter’s Inc.
Stephen Slawson, who lives in Lebanon, N.J., and was co-founder and former manager to a hedge fund named TCMP3 Partners L.P., becomes the eighth individual that the SEC has charged in connection with the agency’s investigation into insider trading and other misconduct involving the securities of the Atlanta-based marketer of children’s clothing.
According to the SEC’s complaint filed in federal court in the Northern District of Georgia, Slawson conducted insider trading on at least eight occasions in the hedge fund’s accounts or personal accounts belonging to him or other family members. Slawson was initially tipped with nonpublic information about Carter’s by a hedge fund investment consultant named Dennis Rosenberg, who received the inside information from a Carter’s executive. Slawson later communicated directly with that executive: Eric Martin, who at the time was vice president and director of investor relations.
The SEC alleges that based on the illegal tips that Slawson received from Rosenberg and Martin, his insider trading in Carter’s stock generated more than $500,000 in profits or avoided losses.
