SEC Sues Kids Clothing Co. Ex-Prez Over $18M Rebate Fraud

Law360, New York (October 19, 2012, 5:33 PM EDT) -- Government regulators on Friday launched a civil fraud suit in Georgia federal court alleging the indicted former president of Atlanta-based children’s clothing maker Carter’s Inc. engaged in a scheme to understate the company's expenses by more than $18 million.

The U.S. Securities and Exchange Commission alleges that Joseph Pacifico tried to hide more than $18 million in unauthorized rebates that Carter’s former vice president of sales, Joseph M. Elles, gave to Kohls Corp., one of Carter’s largest wholesale clients.

The SEC alleges that Pacifico knew Elles...
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