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Defense attorneys were critical of the FBI’s reliance on the informant [Richard Bistrong], an executive of a Florida body armor company [Armor Holdings] who they called a sociopathic liar with a devious mind. They said he was able to persuade federal agents to let him plead guilty to a single bribery count for more than $4.4 million in bribes to officials at the United Nations and overseas even though he had a history of bribery, embezzlement, tax evasion, drug use and solicitation of prostitutes. ~Justice gives up sting case over foreign bribes
Reliance on contractors in Afghanistan draws continuing scrutiny
Charles S. Clark – (GovExec) – February 24, 2012 – The use of contractors in the decade-long U.S. effort to train Afghanistan’s army and police forces continues to raise policy questions as the Obama administration struggles to meet its goal of winding down the American troop presence in the volatile region.
The Government Accountability Office on Thursday reported that the Defense Department — after it took over from the State Department in 2009 the task of training and equipping Afghan security forces — hired a contracting firm without first weighing the advantages and disadvantages of assigning U.S. government personnel to train the war-torn country’s national police.
Dear Committee: Main Street Says Look at Pensions
Gretchen Morgenson – (New York Times) – November 12, 2011 – The so-called supercommittee in Congress has until Nov. 23 to find more than a trillion dollars of new savings in the federal budget.
Here’s one idea: Stop reimbursing the costs of pensions and other retirement benefits at huge, and hugely profitable, defense contractors. Over 10 years, such a move could save an estimated $30 billion — the amount by which these pensions are collectively underfunded. (That figure could change, depending on pension performance.)
True, that might seem like a drop in the bucket, given that the committee’s 12 members are trying to save $1.2 trillion over all. But examining this longstanding practice seems worthy in lean times.
The government also promises to help defense companies shore up their pension funds when they become underfunded. Many of these funds have lost money in recent years in declining financial markets or on bad investments, so the bill for taxpayers has been growing.
(SEC) – Washington, D.C. – November 10, 2011 – The Securities and Exchange Commission today announced that three former directors have agreed to more than $1.6 million in monetary sanctions to settle charges that they were involved in an accounting fraud at a major supplier of body armor to the U.S. military and law enforcement agencies.
The settlements agreed to by Cary Chasin, Jerome Krantz and Gary Nadelman – former members of the board of directors at Pompano Beach, Fla.-based DHB Industries – would impose permanent officer-and-director bars in addition to the monetary sanctions. The settlements are subject to court approval.
“These directors failed to comply with their responsibilities by ignoring the repeated red flags of the massive accounting fraud that senior management orchestrated at DHB,” said Eric I. Bustillo, Director of the SEC’s Miami Regional Office. “While we won’t second guess the good-faith efforts of most company directors, we will hold accountable those who completely abdicate the duties they owe to the companies and shareholders they represent.”
Earlier this year, the SEC separately charged DHB Industries and Chasin, Krantz and Nadelman. The SEC previously charged former DHB CEO David Brooks as well as two other former DHB senior officers for their roles in the fraud. DHB Industries is now known as Point Blank Solutions.
Point Blank settles with DOJ for $1 million – court filing
Point Blank Solutions, Inc. (otc-bb:PBSO), a leader in the field of protective body armor, today announced that Point Blank Body Armor, the Company’s wholly owned subsidiary, has received multiple orders totaling approximately $30 million for the production of Outer Tactical Vest (“OTV”) ballistic panel kits and related ballistic components. Products produced by the Company will be used to support U.S. Military and Government operations and the Company expects to begin production in the fourth quarter of 2011. ~October 5, 2011 – Point Blank Solutions, Press Release
(Reuters) – October 25, 2011 – Point Blank, the bankrupt body armor company, has agreed to pay $1 million to settle a civil suit lodged last year by the Department of Justice, according to court documents filed on Monday.
Point Blank, whose chief executive officer David Brooks was convicted of cheating his company out of $200 million, supplies body armor to the U.S. military and law enforcement agencies. The company was formerly known as DHB Industries.
Three tax counts were separated from the other charges he was convicted of, including insider-trading, fraud and obstruction of justice. He has asked for a new trial on those charges.
“We are channeling our efforts into the other counts,” Brooks’s lawyer Gerald L. Shargel said in a phone interview today.
~ Ex-Point Blank Chief to Plead to Tax Charges, Lawyer Says – Bloomberg August 9, 2011
Former Point Blank Solutions Chief Brooks Pleads Guilty to Tax Charges
Thom Weidlich – (Bloomberg) – August 10, 2011 – David Brooks, the Point Blank Solutions Inc. (PBSOQ) founder convicted by a jury last year of committing a $185 million fraud and looting the military contractor, pleaded guilty to tax charges.
Brooks entered the plea today in federal court in Central Islip, New York, according to Robert Nardoza, a spokesman for U.S. Attorney Loretta Lynch in Brooklyn.
Brooks, 56, a former chief executive officer, and former Chief Operating Officer Sandra Hatfield were convicted last September in Central Islip on charges of insider trading, fraud and obstruction of justice. Point Blank, which makes body armor for the military and police, filed for bankruptcy protection in April 2010. The company was formerly called DHB Industries Inc.
“We’re going to now turn our attention to the remaining issues of the case — forfeiture, Read the remainder of this entry »