The Securities and Exchange Commission Monday charged a former top official at children’s clothing marketer Carter’s Inc. for allegedly engaging in financial fraud and insider trading.

The agency alleges that Carter’s Executive Vice President Joseph Elles manipulated the dollar amount of discounts that the company granted to its largest wholesale customer — a large department store — in order to induce that customer to purchase greater quantities of Carter’s clothing for resale.

The agency also alleges that Elles realized a profit of roughly $5 million from insider trading in Carter’s shares.

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