U.S. Military's Body Armor Supplier Convicted of Fraud
The body armor wasn't believed to be defective.
Updated at 1:45 PM EST on Tuesday, Sep 14, 2010
The founder of America's leading supplier of body armor to the U.S. military has been convicted of charges that he ran a $190 million stock scheme.
The Long Island verdict was reached Tuesday for the founder and former chief executive of DHB Industries, Inc., David H. Brooks.
The company's former chief operating officer, Sandra Hatfield, was convicted of related charges.
They were accused of falsely inflating the value of the inventory of the company's top product, the Interceptor vest, to help meet profit margin projections.
Brooks also was convicted of using the company treasury for personal luxuries, with more than $6 million in unauthorized expenditures.
There were no allegations that the vests or other DHB products were unsafe.
Published at 1:42 PM EST on Sep 14, 2010
Copyright Associated Press / NBC New York