Former Executives for US Military Body Armor Supplier Charged With Fraud

By Aaron Poehler

Published on October 30, 2007

According to the indictment handed down last week by the U.S. attorney's office, Brooks and Hatfield misused DHB corporate funds to pay for personal expenses including vacations, family events, elective cosmetic surgery, and a multi-million dollar bat mitzvah party for Brooks' daughter featuring rapper 50 Cent and Aerosmith vocalist Steven Tyler. The former executives also reportedly manipulated financial records to artificially inflate DHB's stock price and failed to report millions in bonus payments to the IRS.

If convicted, the two could face prison terms of up to 25 years for securities fraud, insider trading, and conspiracy; up to 20 years for obstruction of justice and making false statements; and up to five years for tax fraud, tax evasion, and filing false returns.

In 2006, a U.S. Securities and Exchange Commission and a class-action lawsuit brought by investors forced DHB to admit to financial irregularities. In the wake of the scandal, Brooks' two top aides were indicted on securities fraud charges and DHB changed its name to Point Blank Solutions, moving its headquarters from Westbury, N.Y. to Pompano Beach, Florida.

The company remains the top manufacturer of armored vests for the Iraq war.

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