NY body-armor co. founder convicted of stock scam (running $185 Million Stock Scheme)

[kpete]

Source: The News Tribune

NY body-armor co. founder convicted of stock scam

The founder of America's leading supplier of body armor to the U.S. military was convicted Tuesday of charges that he ran a $185 million stock scheme.


By FRANK ELTMAN; Associated Press Writer
Published: 09/14/1010:30 am | Updated: 09/14/1011:40 am

CENTRAL ISLIP, N.Y. – The founder of America's leading supplier of body armor to the U.S. military was convicted Tuesday of charges that he ran a $185 million stock scheme.

David H. Brooks, founder and former chief executive of DHB Industries Inc., was convicted of 17 counts, including securities fraud and conspiracy. Prosecutors said he used the company treasury for personal luxuries, with more than $6 million in unauthorized expenditures. Sandra Hatfield, the company's former chief operating officer, was convicted of related charges, but acquitted of mail and wire fraud.

................................

The defendants were accused of falsely inflating the value of the inventory of the company's top product, the Interceptor vest, to help meet profit margin projections

.................

The company saw its fiscal fortunes soar after the Sept. 11, 2001, terrorist attacks and the wars in Afghanistan and Iraq. Authorities allege the scheme propelled the company's stock from $2 a share in early 2003 to nearly $20 a share in late 2004. When the pair sold several million DHB shares at that time, Brooks made more than $185 million and Hatfield more than $5 million.


Read more: http://www.thenewstribune.com/2010/09/14/1341026/ny-jury-convicts-body-armor-company.html

[Oceansaway]

1. K&R...n/t

[barbtries]

2. why do that

if his business was booming and he was getting filthy rich regardless. greed, i find it hard to understand this kind of greed. hope he goes to prison.

[Scurrilous]

3. God Bless America!

Colbert: David H. Brooks' $100K Flag Belt Buckle Makes It A Patriotic Duty To Salute His Crotch (August 3, 2010)

<snip>

"Last night, Stephen Colbert named military contractor David H. Brooks his "Alpha Dog Of The Week," after Brooks allegedly used company funds to pay for personal expenses, including a $100,000 ruby-encrusted American flag belt buckle which Colbert said "makes it a patriotic duty to salute his crotch."

Colbert added that Brooks also used the funds to pay for a face-lift for his wife, and pornographic videos for his son. "Although i seriously doubt his son will ever see anything more pornographic than his father f*cking over our troops to buy a face-lift for his mother," he said."

http://tpmmuckraker.talkingpointsmemo.com/2010/08/colbert_david_h_brooks_100k_flag_belt_buckle_makes.php

[wilt the stilt]

4. What's a better punishment

Attica with body armor or Afghanistan with no armor?

Du'ers you decide

[onethatcares]

5. I vote Afganistan with no armor

and if he makes it through 3 tours of duty 1 year each as point man, he gets Attica with body armor.

[eppur_se_muova]

6. We all remember these earlier posts about Mr. Brooks' penchant for living large ...

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=104&topic_id=5527619&mesg_id=5527619
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x2148990

[dem mba]

7. an interesting crime

had David Brooks played by the rules, he probably would have only made off with a mere $150 million (if not more).

The only thing sicker than him defrauding his investors and employees is the nature of this product - body armor for our troops. This guy can take his jewel encrusted USA flag buckle, and shove it sideways.

I'd spit on this man but I wouldn't want to disrespect my saliva like that.

[indepat]

8. Is this not a primer and microcosm of what war profiteering is all about?

:shrug: