Monday, November 14, 2016

David Brooks, manufacturer of faulty body armor and stock swindler dies in prison

....
A spokesman for the Federal Bureau of Prisons confirmed the death. A lawyer for Mr. Brooks’s children, Judd Burstein, said the cause was being investigated.
Mr. Brooks was the founder and former chief executive of DHB Industries, one of the largest makers of bullet-resistant vests and other body armor used by the military and law enforcement. The company originally had its headquarters in Westbury, N.Y. It now operates as Point Blank Enterprises and is based in Pompano Beach, Fla.
Mr. Brooks was serving a 17-year sentence after being convicted in 2010 for his role in what prosecutors described as a $200 million fraud.
During an eight-month trial, spectators were riveted by testimony detailing Mr. Brooks’s lavish lifestyle, which had captured the attention of the tabloids when he threw what was rumored to be a $10 million bat mitzvah party for his daughter featuring the rapper 50 Cent and the rock group Aerosmith.
His company was said to have paid him more than $6 million in personal expenses, some of it used to pay for prostitutes for his employees, plastic surgery for his wife, a burial plot for his mother and a $100,000 jewel-encrusted belt buckle.
Prosecutors also accused him of funneling money from the company to support a thoroughbred horse-racing business.
Mr. Brooks was accused of misleading investors about the company’s finances. He made $185 million by selling his shares when they were at a record high, prosecutors said....
http://www.nytimes.com/2016/11/02/business/david-h-brooks-dead.html?_r=0

bth: He was making body armor that wasn't meeting spec, not reporting it and even when the government discovered it for six months they continued to purchase it. The government got him on financial misdeeds but his real crime was faking the QA on the body armor. The government claimed he misstated inventory write-downs but that was a back end way of saying the stuff was bad and he hadn't registered the expense associated with it. Meanwhile he was blowing money on every conceivable indulgence and his family was caught in a separate sting in the UK moving duffle bags of cash between safety deposit boxes to hide the assets. A total crook.

No comments: