Please ensure Javascript is enabled for purposes of website accessibility

SEC charges defense contractor, 3 ex-directors with accounting fraud

WASHINGTON — Federal regulators have charged a U.S. defense contractor and three of its former board members with accounting fraud, saying the company overstated earnings to investors.

The Securities and Exchange Commission says DHB Industries Inc. settled the civil charges without receiving any penalty. The company, which makes bullet-proof vests, agreed not to repeat the violations.

The Pompano Beach, Fla. company changed its name to Point Blank Solutions in 2007 and is operating while in bankruptcy proceedings.

Charges against former directors Jerome Krantz, Cary Chasin and Gary Nadelman are pending. The SEC said the board members allowed senior managers to overstate income and other data in financial reports from 2003 to 2005.

Former DHB Industries CEO David Brooks was convicted of criminal charges including securities fraud and conspiracy in September.