David Brooks, the founder and former chief executive of DHB Industries Inc., pleaded not guilty to charges including insider trading, securities fraud and tax evasion during day one of his trial in federal court
in Central Islip, New York. Bloomberg.com is reporting the trial, which also involves former chief operating officer Sandra Hatfield, figures to last several months.
“This is a case about the naked greed of two people, Sandra Hatfield and David Brooks, and the lies and the fraud that they used to satisfy that greed,” Assistant U.S. Attorney Richard Lunger told jurors yesterday in his opening statement. “In the end they lied in order to push up the price of the company’s stock, then they sold their stock for $190 million.”
If convicted, Brooks and Hatfield could face up to 25 years in prison.
In addition to spending company money on racehorses, Brooks is accused of using funds to purchase luxury automobiles, expensive vacations, plastic surgery for his wife and personal items including a jewel-laced belt buckle valued at more than $100,000.
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