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Founder of leading body armour going to prison


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Old 08-17-2013, 01:06 PM   #1 (permalink)
 
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Default Founder of leading body armour going to prison

CENTRAL ISLIP, N.Y. — The founder of America’s leading supplier of body armor to the U.S. military was sentenced Thursday to 17 years in prison for running a $185 million stock swindle in which he used the proceeds to finance luxuries such as lavish parties featuring Tom Petty, Aerosmith and the Eagles.

David H. Brooks, 58, founder and former chief executive of DHB Industries Inc., was convicted in 2010 of securities fraud and conspiracy. He and the company’s former chief operating officer 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.

U.S. District Judge Joanna Seybert said Thursday that Brooks displayed a total lack of remorse — “not a glimmer, not a whisper, not a moment of regret.”

“He attempted to portray himself as a great patriot,” she said, attracting investors who thought they were doing something to protect troops in Iraq and Afghanistan.

Last week, she ordered Brooks to forfeit nearly $60 million in proceeds from the insider trading scheme. He also must pay restitution; an amount will be determined within 90 days.

Sandra Hatfield, the former chief operating officer, was convicted of related charges but acquitted of mail and wire fraud at the same trial. She has yet to be sentenced.

There were no allegations that the company cheated the government or that there was anything wrong with the vests or other DHB products. The Interceptor vest, designed to withstand rifle fire and shrapnel, was made for the Marine Corps and other branches of the military.

The company saw its fortunes soar after the Sept. 11, 2001, terror attacks and the wars in Afghanistan and Iraq. Its stock skyrocketed from $2 a share in early 2003 to nearly $20 a share in late 2004, something prosecutors said was due to the scheme.

When the pair sold several million DHB shares at that time, Brooks made more than $185 million and Hatfield more than $5 million, prosecutors said.

Prosecutors said Brooks bought a $100,000 diamond-encrusted American flag belt buckle and threw lavish parties for his children that featured big-name entertainers.

He resigned from DHB in July 2006, about the same time the company relocated its headquarters from Westbury, N.Y., to Pompano Beach, Fla., where it operates as Point Blank Solutions Inc. Hatfield left the company in November 2005.
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Old 08-17-2013, 01:57 PM   #2 (permalink)
 
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Funny how greed works.
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Old 08-17-2013, 04:57 PM   #3 (permalink)
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He will be able to test his product some more.
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Old 08-17-2013, 05:54 PM   #4 (permalink)
 
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Money makes the world go round, " Good or Bad " ......... pretty sad though, greed will get ya every time. JMHO.......Concealed 27
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Old 08-17-2013, 07:57 PM   #5 (permalink)
 
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I may be thick but what did he do wrong. I see he falsely inflated the price on a product but that doesn't mean anyone has to buy it at that price. I don't buy this insider trading BS. If congress can legally do it then everyone else should too. As I see it, all he did was sell some of his stock when it had peaked.

Somebody paint me a picture so I can understand this.
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Old 08-17-2013, 08:19 PM   #6 (permalink)
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Golden rule! The people with the gold rule.
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Old 08-18-2013, 01:51 PM   #7 (permalink)
 
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Default Founder of leading body armour going to prison

Having served in the military and seeing what they have in their parts system I can say this. I am not surprised by this. the only thing that does surprise me is that he got caught. The military will buy just about anything, but usually they dont look at the price tag so much as what it does. I think what he did was wrong and he should be punished, but think of how many other people are still out there doing the same thing just to get that extra 50 cents.
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Old 08-18-2013, 02:09 PM   #8 (permalink)
 
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Originally Posted by Arckadian View Post
Having served in the military and seeing what they have in their parts system I can say this. I am not surprised by this. the only thing that does surprise me is that he got caught. The military will buy just about anything, but usually they dont look at the price tag so much as what it does. I think what he did was wrong and he should be punished, but think of how many other people are still out there doing the same thing just to get that extra 50 cents.
This is the problem with the Government. It isn't money coming out of their own personal pocket so they don't care what it costs. Companies have purchasers to get things they need at the best price they can and so should the government. In most cases there is more than one maker of any certain item. If they were to start shopping this would keep makers in check and keep them from price gouging.

But sometimes it's the government greasing somebody for their support. Yeah, I'll pay $200 for your toilet seats if you contribute to my campaign fund. That's all the stimulus was. I'll give you a bunch of American taxpayers money if you'll give back to my campaign fund when I need it. It was just a huge money laundering scheme.

Apparently the guy in the article did something they (somebody in government) didn't like or they'd continue to look the other way. He must have crossed somebody or pissed someone off for them to retaliate.
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Old 08-20-2013, 10:14 AM   #9 (permalink)
 
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Originally Posted by SilvrSRT10 View Post
I may be thick but what did he do wrong. I see he falsely inflated the price on a product but that doesn't mean anyone has to buy it at that price. I don't buy this insider trading BS. If congress can legally do it then everyone else should too. As I see it, all he did was sell some of his stock when it had peaked.

Somebody paint me a picture so I can understand this.
He and the company’s former chief operating officer 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.

Sounds like fraud to me but I'm not some stock market investigator either.

Hired the Eagles to play at his kids party??..must of been one hell of a party!
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