Joseph Pacifico, age 62, of Atlanta, Georgia was indicted yesterday by a Grand Jury for his part in a massive cover-up scheme that spanned years.

Pacifico was joined by Joseph M. Ellis, age 57, of Las Vegas, Nevada. The two of them so far have amassed 37 federal charges for their part in the scheme. Some of the charges include fraud, filing of false financial statements, and falsifying the ooks and records of a public company. Elles supervised the wholesale sales for the company.

Carters Inc. operates over 500 stores throughout the United States and supplies clothing to other such giants as Kohls. One of Carters amajor brands is OshKosh B’gosh.

Pacifico was the president of Carters from 2004 until December of 2009. The prosecutors in the case say that Pacifico was aware of the accounting irregularities at least since 2009. At the center of the suit is the timing of rebates sent to retailers that failed to meet targetted profit margins. They tried to keep hidden undisclosed rebates that amounted to millions of dollars from shareholders and auditors. They used tactics such as lying, signing false documents and having those under them to cover up the massive fraud.

Carters first announced the irregularities in October of 2009. The announcement caused the company’s stock to fall almost 24 percent in a single day. Following the announcement, Carters restated some of the financial statements filed by Pacifico and Elles.

Ppacifico and Elles face up to 25 years in prison and a $250,000 fine for each of the counts.

The case is being investigated by the Federal Bureau of Investigation.