Inferior Body Armor Case - execs in hot water (fraud, prostitues, porn, luxury cars, etc)

[The Straight Story]

Executives Don’t Escape Financial Responsibility in Inferior Body Armor Case

Executives in charge of a controversial body-armor manufacturer have lost another ruling in court.

Last month, former CEO David Brooks and former chief operating officer Sandra Hatfield of DHB Industries were convicted of orchestrating a $190 million fraud by manipulating the company’s books to inflate earnings, profit margins and stock price. Their scheming came about after DHB Industries’ body armor—which had been worn by law enforcement and soldiers—was found to be faulty, causing a drop in the company’s value on Wall Street.

Next, the executives worked out a deal that would have shielded them from paying millions of dollars back to the company, whose name had switched to Point Blank Solutions. But the 2nd Circuit Court of Appeals threw out the $35.2 million settlement, ruling that a district court judge lacked the authority to accept a deal that insulated Brooks and Hatfield from liability under the Sarbanes-Oxley Act.

Only the Securities and Exchange Commission has the authority to exempt executives from the law which requires CEOs and CFOs to reimburse their companies for bonuses and profits from stock sales that derive from filing a false financial report.

During the fraud trail, it was revealed that Brooks had billed his company for more than $6 million in personal expenses that included luxury cars, a $100,000 American-flag belt buckle encrusted with rubies, sapphires and diamonds, university textbooks for his daughter, pornographic videos for his son, plastic surgery for his wife, a burial plot for his mother, and prostitutes for his employees and himself.

http://www.allgov.com/Top_Stories/ViewNews/Executives_Dont_Escape_Financial_Responsibility_in_Inferior_Body_Armor_Case_101024

[opihimoimoi]

1. They sure knew how to spend money...Damn

[Jeffersons Ghost]

2. K&R

[petronius]

3. I thought at first that "Inferior Body Armor" was the name of the company - which

would have been the only honest thing they did.

I'll give them credit for incredible chutzpah, but they need to spend a lot of time in prison (with a few years added on for terrible taste in clothing)...

[HCE SuiGeneris]

4. A charming duo. Hope they share adjoining cells for the next 30 years.

[Angry Dragon]

5. I see nothing wrong in his spending

It is just the way to run a good business.

He just needs a tax break so he can hire more people.

[Ikonoklast]

6. Republican Business Values.

Hookers, booze, blow.

[JVS]

7. If I were his son, I'd be pretty pissed off right now.

It seems unfair to get mere porn, when he's springing for hookers for employees.

[leeroysphitz]

8. You are sick and wrong.

[JVS]

11. You mean that as a compliment, right?

[progressoid]

9. Free Market!!!

[atreides1]

10. I have a question

Where's the Tea Bagger Party. That's right, I keep forgetting, this all started under their war hero Bush, so it's not important.

[WinkyDink]

12. No!!! NOT CEO'S!! I refuse to countenance such a canard about any Captains of Industry!

OMG---WHO does not know these greedhead crimes are rampant??

[DCKit]

13. Wonderful news.

On to Wall St.!

[MichiganVote]

14. More Sociopaths at work