On Tuesday, March 9 in Central Islip, New York, there was more damaging testimony in the trial of ex-standardbred horse owner David Brooks, who is alleged to have

erroneously inflated the worth of his bulletproof vest company, DHB Industries, in a 'pump-and-dump' scenario before personally cashing out to the tune of $185 million.

According to a report on newsday.com, former DHB Industries chief financial officer Dawn Schlegel has testified that Brooks directed her to issue company cheques for as much as $9,000 in cash to pay for prostitutes. The report states that, according to Schlegel, Brooks openly admitted to his bankers that such payments were used to pay for hookers. According to the article, the amount of money spent on the prostitutes was in the tens of thousands.

The report also states that Brooks had a tent set up at a company party in Florida, and that prostitutes were in the tent. According to Schlegel, Brooks told her that her employees were welcome to participate in sexual conduct with the hookers in the tent.

The article also stated that Schlegel said that the prostitute issue was discussed during DHB board meetings, yet any reference to the discussion was left off the official minutes. Schlegel also testified that at one point Brooks gave her confirmation that the money was indeed going towards prostitutes by getting one of DHB's stockbrokers to describe an instance he had with one of the prostitutes.

In addition to the prostitute issue, Schlegel also testified that David Brooks personally obtained $2,500 a week via payments from the DHB Industries-owned company Tactical Armor Products. According to Schlegel, the $2,500-a-week payments were reportedly for a fictitious loan.

(With files from newsday.com)

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