Two former executives at DHB Industries were arrested today on charges they manipulated the books to make millions of dollars in inside trading. Faithful readers of this blog (both of you) may remember them from the Corruptco blogfest piece I did on them in February of this year, And Then He Changed Into A Pink Leather Outfit For Aerosmith, which was about DHB Industries CEO, David Brooks and the lavish bat mitzvah he through for his daughter. David Brooks has been placed on indefinite leave by the ASE pending the outcome of investigations.
The two executives, Chief Financial Officer Dawn Shlegel and Chief Operating Officer Sandra Hatfield, inflated DHB earnings and profit margins between 2003 and 2005. They then sold thousands of shares based on inside information, netting a cool $8 million. Which is not as much as the CEO spent on his daughter's party, but enough to get them thrown in the clink for up to twenty five years (as if), while they'll probably go the Ken Lay route and spend all the money they bilked the investing public out of to keep themselves free on appeal until all their money's gone, or they croak from a heart attack at the prospect of actually having to bear punishment for breaking the law.