Ex-CEO of Point Blank Sentenced to 17 Years in Fraud Case
The founder of military body armor supplier Point Blank Solutions Inc. (PBSOQ) was sentenced to 17 years in prison for siphoning millions of dollars from the company and selling stock based on inside information.
David Brooks, 58, was sentenced by U.S. District Judge Joanna Seybert today in federal court in Central Islip, New York, almost three years after his conviction.
Accused of spending company money on items such as a $100,000 diamond belt buckle, leather-bound invitations for his son’s bar mitzvah, care for 100 purebred trotting horses, and family trips on a company Learjet, Brooks contended that he was mentally incompetent for part of his trial.
“I think there’s a good chance when this defendant gets out he won’t commit crimes anymore,” the judge said. “This is a just, fair sentence.”
Formerly known as DHB Industries Inc., Point Blank is based in Pompano Beach, Florida. The company, which filed for bankruptcy in April 2010, was driven into insolvency because of Brooks’ actions, the company’s chief restructuring officer said in court today.
Brooks and former Chief Operating Officer Sandra Hatfield lied about inventory of “Interceptor” combat vests that were shipped to the U.S. armed forces and falsely inflated the company’s value and their own stock, the government said.
They were convicted in 2010 on charges of insider trading, fraud and obstruction of justice. Hatfield hasn’t been sentenced yet.
The case is U.S. v. Brooks, 06-CR-550, U.S. District Court, Eastern District of New York (Central Islip).
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