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More Trouble for U.S. Bulletproof Vest Maker
August 23, 2006 9:13 AM
A bulletproof vest manufacturer, which has a history of allegations of ineffectiveness and recalls, was dealt yet another blow last week when two of the company's former executives were indicted on securities fraud and insider trading charges. This after a class action lawsuit over similar allegations forced the chief executive to resign.
DHB Industries, along with its founder and former CEO David Brooks, has a rocky history of controversy and complaints over its bulletproof vests which it sells to the U.S. military and law enforcement agencies across the country.
ABC News first reported on DHB in 2002 when questions about the effectiveness of their Point Blank vests were raised after the New York State Labor Department investigation concluded that at least 900 defective vests were sold to the New York Police Department. Following the investigation, some 6,300 vests, more than a quarter of all Point Blank vests worn by NYPD officers, were taken out of service and returned to the company.
Since then, there have been more recalls and more controversy.
David Brooks, the former chairman and founder of DHB, Point Blank's parent company, was described in 1996 by the Securities Exchange Commission as having a history of serious security law violations.
A class action lawsuit, which was recently settled for some $35 million, charged Brooks and his top executives with issuing misleading financial statements and then selling over 10 million of their own shares in the company and receiving over $200 million in illegal profits. The company has not acknowledged any wrongdoing.
Following that stock sale, Brooks again raised eyebrows when he threw his daughter a lavish bat mitzvah, which reportedly cost $10 million. The party featured performances by Aerosmith and rapper 50 Cent and took place at the New York's famed Rainbow Room.
Just last week, two of DHB's former executives were charged with securities fraud and insider trading. Brooks, who resigned from the company this summer, has not been charged, but the investigation is ongoing.
Meanwhile, DHB continues to supply body armor to the U.S. Army.
"We take these charges seriously," said an Army spokesperson, "and we continue to work with the company." He added that there is a rigorous testing process the vests must go through and that, so far, there have been no issues of quality with the DHB vests.
The Marine Corps, however, which recalled thousands of Point Blank vests in 2005, said they no longer have any contracts with DHB.
Calls to DHB for this story were not returned.
August 23, 2006 | Permalink | User Comments (5)
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For a very short time, I worked for David Brooks in one of his companies. When I made a suggestion to him, he said something like I want you to know that I am probably the smartest person you will ever meet. To which I replied, "David, I know a lot of very smart people, most of whom are in my own family." Since then, David Brooks has been a family joke, dubbed "the smartest man in the world."
I can't say I am surprised that his arrogance has led to his current predicament. I am convinced that arrogance can lead to the most serious of problems, but never expected that arrogance on a national level could tip the balance of the world.
We will recover from the foibles of David Brooks. What about the rest of the world's problems?
Posted by: Joanne Gruskin | Aug 23, 2006 1:20:37 PM
Instead of throwing a $10M bat mitzvah party, maybe David Brooks should try actually reading some Jewish texts. Like Pirke Avot where it says "Who is wise -- he who learns from all people" and "Arrogance takes a man out of the world."
Posted by: Bob Rabinoff | Aug 23, 2006 3:58:26 PM
Where are the investigations? Our soldiers lives in jeopordy with faulty vests, fraud and corruption on a grand scale, and war profiteering just for the fun of it? How much did this guy contribute to the Republicans? Who made the decision to use these vests? I want them punished and I'm not alone!
Posted by: Carol Davis | Aug 24, 2006 11:06:53 PM
Yet another example ultimately, of Bush being asleep at the wheel while his cronies go on a spree at taxpayer's expense. Congress needs to kick its' oversight role back into gear and shine the light on the cockroaches.
Posted by: Cameron D. | Aug 29, 2006 3:07:19 PM
Andrew and Elizabeth Brooks, two of his children, went to school with me. Elizabeth is now in London with her mother, where she is attending Southbank International School. Andrew, who graduated last year from The Wheatley School in Old Westbury, NY, is attending UMiami as an undergrad. I was at the infamous bat-mitzvah party, and yes, it was just as insane as everyone chalks it up to be. The adults recieved digital cameras as a party favor, while the kids received personalized sweatshirts, personalized Chrome Hearts necklaces, and video iPods. The invitations alone were extremely elaborate, and the party was nothing short of spectacular. However, buying hundreds of already spoiled children who you do not even know extremely expensive gifts? If you can't think of a better way to spend 10mil, hey, hand it over. I'll do something productive with it; say, buy ambulances and hospitals in Africa, pay for children's education, support efforts to create more peaceful, safe atmospheres in third-world countries, and feeding those who are not even sure of when their next meal will be. A productive use of money?
ase and point.
Mr. Brooks, Mr. President, celebrities and millionares world-wide: Have you ever said, "Wow, I'm starving."? So many people actually ARE starving. 10 million dollars could change the lives of so many people in such positive, productive ways; it makes me sick to think that one night of festivities and fun took priority over improving the lives of thousands of people world-wide.
Selfishness will get you nowhere; when you die, all that your life will mean to anyone is based on the impact you left on the world. You only get to do it once, no do-overs, so make it a good one, I beg of you.
Posted by: J | Jan 17, 2007 11:17:07 PM
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