Former CEO Of U.S. Bulletproof Vest Maker Arrested (accounting fraud, tax fraud and insider trading)

Former CEO Of U.S. Bulletproof Vest Maker Arrested

POSTED: 9:07 am EDT October 25, 2007
UPDATED: 10:01 am EDT October 25, 2007

NEW YORK -- The former CEO of a bulletproof vest-making company for U.S. soldiers was arrested Thursday on accounting fraud, tax fraud and insider trading, law enforcement officials said.

David H. Brooks, the former head of DHB industries, was arrested in New York by IRS and FBI agents on charges he illegally made tens of millions by allegedly lying about the financial results of his company.

Federal agents were planning to seize assets Thursday morning as part of the raid including Brooks' Ferrari and armor plated SUV at his Old Westbury home.

Investigators had been looking into whether Brooks took part in an alleged "pump and dump" scheme. Some reports have estimated Brooks made more than $180 million by selling his personal stock holdings just before DHB shares plunged from $20 to less than $10 dollars per share.

Brooks made his fortune by reportedly lobbying for an exclusive contract to make and provide bulletproof vests for soldiers in Iraq. There were questions in 2005 about whether the DHB vests worked, or were effective enough, in stopping enemy fire.

more