SEC charges former DHB Industries CEO with securities fraud |
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Thu, 25 Oct 2007 19:21
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SAN FRANCISCO (Thomson Financial) - The Securities and Exchange Commission said Thursday it filed securities fraud charges against David Brooks, the former chairman and chief executive of DHB Industries Inc., a supplier of body armor to the U.S. military and law enforcement agencies.The SEC said its complaint alleges that Brooks engaged in a 'pervasive accounting fraud' between 2003 and 2005, violated insider trading laws in 2004, and used millions of dollars in corporate funds to pay personal expenses.The SEC charged that Brooks 'funneled millions of dollars out of DHB through fraudulent transactions' while using company credit cards and checks to pay millions of dollars for personal items such as luxury cars, jewelry and vacations.In addition, Brooks, aided by DHBs former chief financial officer and chief operating officer, manipulated the companys gross profit margin and net income, the SEC said.Gabriel Madwaygm/jwCOPYRIGHTCopyright Thomson Financial News Limited 2007. All rights reserved.The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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