Friday, October 26, 2007
David Brooks, the former CEO of body armor-maker DHB Industries (n/k/a Point Blank Solutions) was arrested on conspiracy, insider trading, and other charges involving an alleged scheme to inflate the company's performance from 2000-2006. The indictment also alleges that Brooks used company funds (about $ 5 million) for a whole array of personal and family expenses, including expenses related to his children's Bat/Bar Mitzvahs and his wife's cosmetic surgery. WSJ, Former DHB Industries Chief Is Charged With Insider Trading.
The SEC also brought civil charges against Mr. Brooks. At the time of the alleged conduct, Brooks was subject to an SEC injunction entered by a federal court in December 1992 against future violations of the antifraud provisions.