RSS Feed Get Updates

High Flying Military Contractor Free Fallin'

David Brooks, a man who hired Tom Petty and Aerosmith to perform at his daughter's bat mitzvah, was convicted Tuesday (9/14) on 17 counts following a trial that charged him with securities and mail fraud, insider trading and obstruction of justice.  Brooks, who headed DHB Industries, an enterprise that supplied body armor to US military branches, was accused of using $6 million of company funds to underwrite his lavish lifestyle, including the 2005 bash in the Rainbow Room in New York City for his daughter's bat mitzvah that Aerosmith, Tom Petty and the rapper 50 Cent were booked to appear at. Prosecutors charged that Brooks, who surrounded himself with extravagant gifts bought at the expense of taxpayers and investors, also engaged in a scheme to defraud investors by plotting with his former CEO to pump up DHB's stock value by overstating the company's financial state.  Brooks and the woman cashed out to the tune of nearly $200 million each after the stock had increased from around $2 a share to almost $20. The subsequent collapse of the stock cleaned out investors.  Brooks reportedly faces a potential life sentence on the multiple convictions.  Too bad they don't allow belts in the joint - he'll have to leave behind the $100,000 diamond encrusted American flag belt buckle he liked to show-off.

this story

See all current stories
Find out what went down on this date in  1964     1977     1982     1968     1996     1973     1965     1979     2001     1984     1970     1967     1993     1978     2003     1976     1995     1983     1966     2000     1975     1988     1969     1992     1971     1980     1968     1997     1972     1985     1999     1973     1986     1968     1994     1981     2002     1978     1987     1996     1974     2004     1977     1998
Dig Deeper. Visit the ROCKinsights Archives

© 2009 Sound Insights, Inc. Terms of Use