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Fraud Charges Dropped Against Stockman

MANHATTAN (CN) - Prosecutors dropped fraud charges against former Reagan White House budget director David Stockman and other executives of Collins & Aikman for their roles in the auto-part maker's 2005 collapse.

"After a renewed assessment of the evidence ... the government has concluded that further prosecution of this case would not be in the interests of justice," wrote Lev L. Dassin, acting U.S. attorney for the Southern District of New York.

Stockman served as CEO of Collins & Aikman, an auto-parts maker that went under just five days after Stockman resigned.

His co-defendants in the indictment, which was unsealed in March 2007, included Michael A. Stepp, David R. Cosgrove and Paul C. Barnaba. They all pleaded not guilty to charges that they hid the company's financial woes.

Stockman is a former Michigan congressman and head of the Office of Management and Budget in Reagan's administration in the 1980s. He joined Collins & Aikman as director in 2001, and served as CEO from August 2003 to May 2005.

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