Atlanta -- U.S. prosecutors have charged former Carter’s senior VP Joseph Elles with securities fraud, according to a report by the Associated Press.
Elles has been accused of lying about the company's financial situation and then selling shares of its stock when the price was artificially inflated.
A federal grand jury indicted Joseph Elles on charges of securities fraud, falsifying corporate records and filing false statements while he was with Carter’s. Among the accusations are charges that he gave rebates worth tens of millions of dollars to Kohl’s Corp., Carter’s largest customer, and then hid the discounts in financial statements. Elles left the company in 2009.
He was released on $100,000 bond at a court hearing Monday.