Former CEO of U.S. Bulletproof Vest Maker Arrested
- 17 years ago
The former CEO of a bulletproof vest-making company for U.S. soldiers was arrested on accounting fraud, tax fraud and insider trading, law enforcement officials said.
David H. Brooks, the former head of DHB industries, was arrested in New York by IRS and FBI agents on charges he illegally made tens of millions by allegedly lying about the financial results of his company.
Federal agents were planning to seize assets as part of the raid including Brooks' Ferrari and armor plated SUV at his Old Westbury home.
Investigators had been looking into whether Brooks took part in an alleged "pump and dump" scheme. Federal prosecutors said Brooks made an estimated $200 million by selling his personal stock holdings just before DHB shares plunged from $20 to about $1 per share.
Brooks made his fortune by reportedly lobbying for an exclusive contract to make and provide bulletproof vests for soldiers in Iraq. There were questions in 2005 about whether the DHB vests worked, or were effective enough, in stopping enemy fire.
Prosecutors said in addition to reaping nearly $200 million through illegal trading, Brooks used his company's money to pay for a personal horse racing business, luxury vacations, cosmetic surgery for relatvies, jewelry and country club bills. Investigators said Brooks spent $106,000 of the company's money on vitamins for his horses in one year.
The pentagon had been conducting its own investigation into DHP. Investigators said the charges Thursday relate only to the accounting fraud and insider fraud allegations.
Brooks also made headlines in 2005 for a $10 million bash he threw for his daughter at the Rainbow Room in Manhattan. The event was for his daughter's bat mitzvah, and the rock band Aerosmith performed as Brooks himself reportedly danced around in a hot-pink suede outfit.
In August 2007, two other former executives with the company were arrested and charged. IRS and FBI agents arrested Brooks at his Manhattan home.
David H. Brooks, the former head of DHB industries, was arrested in New York by IRS and FBI agents on charges he illegally made tens of millions by allegedly lying about the financial results of his company.
Federal agents were planning to seize assets as part of the raid including Brooks' Ferrari and armor plated SUV at his Old Westbury home.
Investigators had been looking into whether Brooks took part in an alleged "pump and dump" scheme. Federal prosecutors said Brooks made an estimated $200 million by selling his personal stock holdings just before DHB shares plunged from $20 to about $1 per share.
Brooks made his fortune by reportedly lobbying for an exclusive contract to make and provide bulletproof vests for soldiers in Iraq. There were questions in 2005 about whether the DHB vests worked, or were effective enough, in stopping enemy fire.
Prosecutors said in addition to reaping nearly $200 million through illegal trading, Brooks used his company's money to pay for a personal horse racing business, luxury vacations, cosmetic surgery for relatvies, jewelry and country club bills. Investigators said Brooks spent $106,000 of the company's money on vitamins for his horses in one year.
The pentagon had been conducting its own investigation into DHP. Investigators said the charges Thursday relate only to the accounting fraud and insider fraud allegations.
Brooks also made headlines in 2005 for a $10 million bash he threw for his daughter at the Rainbow Room in Manhattan. The event was for his daughter's bat mitzvah, and the rock band Aerosmith performed as Brooks himself reportedly danced around in a hot-pink suede outfit.
In August 2007, two other former executives with the company were arrested and charged. IRS and FBI agents arrested Brooks at his Manhattan home.