Eagle Industries

SEC Charges Military Body Armor Supplier with Accounting Fraud

According to a Wall Street Journal report the Securities and Exchange Commission has charged Pompano Beach, Fla.-based DHB Industries (now known as Point Blank Solutions) with committing “engaged in pervasive accounting and disclosure fraud through its senior officers and misappropriated company assets to personally benefit” its former chief executive, David Brooks. The SEC separately charged three of the company’s former outside directors and audit committee members; Jerome Krantz, Cary Chasin and Gary Nadelman, saying they were “willfully blind to numerous red flags” signaling the fraud.

In particular, the trio ignored signs that the company was paying for prostitutes as well as other questionable expenses. “In fact, although these payments were discussed at board meetings, these discussions were concealed by omitting them from the official board minutes,” according to claims by the SEC.

It’s been awhile since we have seen anything on this case. Brooks is no stranger to the courts and was previously charged for fraudulently diverting $10 Mil in company funds for his personal use. You may also remember that Steven Colbert picked him as the “Alpha Dog of the Week“. Additionally, Point Blank is currently in bankruptcy court.

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