SEC Sues Major Body Armor Supplier

MIAMI (CN) - The SEC today charged a "major supplier" of body armor to the U.S. military and law enforcement agencies with "massive accounting fraud." It sued DHB Industries nka Point Blank Solutions and in a separate complaint sued outside directors Jerome Krantz, Cary Chasin, and Gary Nadelman, claiming they were "willfully blind to numerous red flags signaling the accounting fraud, reporting violations, and misappropriation".

The SEC previously accused the company's former CEO David Brooks and two other senior officers with accounting fraud. The SEC said in a statement today that the company "engaged in pervasive accounting and disclosure fraud through its senior officers and misappropriated company assets to personally benefit the former CEO."

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