{"id":39161,"date":"2013-11-15T04:28:04","date_gmt":"2013-11-15T09:28:04","guid":{"rendered":"http:\/\/www.hedgeco.net\/news\/?p=39161"},"modified":"2013-11-15T04:36:17","modified_gmt":"2013-11-15T09:36:17","slug":"mark-megalli-charged-with-insider-trading-giving-his-hedge-fund-a-3-2m-edge","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/11\/2013\/mark-megalli-charged-with-insider-trading-giving-his-hedge-fund-a-3-2m-edge.html","title":{"rendered":"Mark Megalli Charged With Insider Trading, Giving His Hedge Fund $3.2M Edge"},"content":{"rendered":"<p><a href=\"http:\/\/www.hedgeco.net\/news\/wp-content\/uploads\/2013\/11\/insider-trading.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright size-medium wp-image-39162\" alt=\"insider-trading\" src=\"http:\/\/www.hedgeco.net\/news\/wp-content\/uploads\/2013\/11\/insider-trading-300x225.jpg\" width=\"300\" height=\"225\" srcset=\"https:\/\/hedgeco.net\/news\/wp-content\/uploads\/2013\/11\/insider-trading-300x225.jpg 300w, https:\/\/hedgeco.net\/news\/wp-content\/uploads\/2013\/11\/insider-trading.jpg 340w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a>New York (HedgeCo.Net) &#8211; Another New York hedgie has gotten himself in trouble with the SEC after he used nonpublic information about a clothing company to give the hedge fund where he worked a $3.2 million trading edge.<\/p>\n<p>The SEC is charging Mark Megalli with insider trading,\u00a0alleging that he obtained the inside information through a consulting agreement he had with Eric Martin, the former vice president of investor relations at youth clothing store Carter\u2019s. The SEC has previously charged Martin among several others in its investigation into insider trading of Carter\u2019s stock.<\/p>\n<p>Martin, who had left Carter\u2019s and started his own consulting firm, maintained contact with at least one company insider and obtained confidential information in advance of market-moving events that he supplied to Megalli so he could trade on it. Megalli enabled hedge fund Level Global Investors L.P. to avoid approximately $2.4 million in losses and make $853,655 in illicit profits by trading shares ahead of positive or negative news.<\/p>\n<p>\u201cThe information was hot enough that Megalli sometimes conducted the trades while he was still on the phone with his source,\u201d said William Hicks, associate regional director of the SEC\u2019s Atlanta Regional Office. \u201cAfter one profitable trade, Megalli bragged to his colleagues about being \u2018max short\u2019 in advance of negative news without mentioning his inside source.\u201d<\/p>\n<p>The SEC agreed not to prosecute Carter\u2019s in return for the company\u2019s extensive cooperation with the SEC\u2019s investigation.<\/p>\n<p>Alex Akesson<br \/>\nFor\u00a0<a title=\"hedge funds\" href=\"http:\/\/www.hedgeco.net\/\">HedgeCo.net<\/a><br \/>\n<a href=\"mailto:alex@hedgeco.net\">alex@hedgeco.net<\/a><br \/>\n<a title=\"hedge fund\" href=\"http:\/\/www.hedgeco.net\/\">HedgeCo.Net<\/a>\u00a0is a premier\u00a0<a title=\"hedge fund database\" href=\"http:\/\/www.hedgeco.net\/\">hedge fund database<\/a>\u00a0and community for qualified and accredited investors only. Membership in\u00a0<a title=\"hedge fund\" href=\"http:\/\/www.hedgeco.net\/\">HedgeCo.net<\/a>\u00a0is FREE and EASY. We also offer FREE LISTINGS for\u00a0<a title=\"hedge fund\" href=\"http:\/\/www.hedgeco.net\/\">Hedge Funds<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>New York (HedgeCo.Net) &#8211; Another New York hedgie has gotten himself in trouble with the SEC after he used nonpublic information about a clothing company to give the hedge fund where he worked a $3.2 million trading edge. The SEC [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11,3],"tags":[],"class_list":["post-39161","post","type-post","status-publish","format-standard","hentry","category-hedge-fund-fraud","category-hedgeco-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/39161","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=39161"}],"version-history":[{"count":6,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/39161\/revisions"}],"predecessor-version":[{"id":39170,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/39161\/revisions\/39170"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=39161"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=39161"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=39161"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}