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"NEW YORK (Reuters) - David Stockman, a former Reagan White House budget director and ex-head of Collins & Aikman Corp., was indicted on fraud, conspiracy and other charges on Monday, accused of misleading investors when he was chief executive of the bankrupt auto parts maker.
Stockman and three other former company executives are accused of orchestrating a scheme to hide the company's true financial condition when it was on the brink of collapse, according to an indictment brought by federal prosecutors in Manhattan.
Four other ex-company officials have pleaded guilty to related charges, the government said.
The indictment accuses Stockman and three other former executives of manipulating reported earnings and issuing false statements, as well as engaging in fraudulent rebate schemes. Stockman is also accused of trying to thwart an internal investigation into the company's rebate accounting.
Stockman "hid the full truth from the company's investors and lenders," Manhattan U.S. Attorney Michael Garcia said at a news conference. He said the ex-CEO and others "resorted to lies, tricks and fraud" to boost Collins & Aikman's financial performance when they could not improve it legitimately.
The indictment is a major white-collar crime case for prosecutors in Manhattan federal court, site of criminal trials of figures such as homemaking icon Martha Stewart and former WorldCom chief Bernard Ebbers in recent years.
Stockman, a former Michigan congressman, was head of the Office of Management and Budget during the Reagan administration. There, he became famous as a promoter of supply-side economic policies, dubbed "Reaganomics."".....
another fine example of the 'moral' party and oh how ironic that he was the budget director and backed reaganomics and is now charged with "manipulating reported earnings and issuing false statements"
"NEW YORK (Reuters) - David Stockman, a former Reagan White House budget director and ex-head of Collins & Aikman Corp., was indicted on fraud, conspiracy and other charges on Monday, accused of misleading investors when he was chief executive of the bankrupt auto parts maker.
Stockman and three other former company executives are accused of orchestrating a scheme to hide the company's true financial condition when it was on the brink of collapse, according to an indictment brought by federal prosecutors in Manhattan.
Four other ex-company officials have pleaded guilty to related charges, the government said.
The indictment accuses Stockman and three other former executives of manipulating reported earnings and issuing false statements, as well as engaging in fraudulent rebate schemes. Stockman is also accused of trying to thwart an internal investigation into the company's rebate accounting.
Stockman "hid the full truth from the company's investors and lenders," Manhattan U.S. Attorney Michael Garcia said at a news conference. He said the ex-CEO and others "resorted to lies, tricks and fraud" to boost Collins & Aikman's financial performance when they could not improve it legitimately.
The indictment is a major white-collar crime case for prosecutors in Manhattan federal court, site of criminal trials of figures such as homemaking icon Martha Stewart and former WorldCom chief Bernard Ebbers in recent years.
Stockman, a former Michigan congressman, was head of the Office of Management and Budget during the Reagan administration. There, he became famous as a promoter of supply-side economic policies, dubbed "Reaganomics."".....
another fine example of the 'moral' party and oh how ironic that he was the budget director and backed reaganomics and is now charged with "manipulating reported earnings and issuing false statements"
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