Stockman, 3 others, face fraud charges
When top brass of an ailing corporation hides it's financial health from creditors and investors, he is committing a crime, fraud.This is exactly why a former top government official of White Hpuse who bcame a CEO of a private corporation was indicted together with the other chief officers
Stockman, 3 others, face fraud charges
Former White House budget czar, three others, accused of wrongdoing
The Associated Press
Updated: 12:33 p.m. PT March 26, 2007
NEW YORK - David Stockman, the former budget director in the Reagan White House, was charged in an indictment unsealed Monday with overseeing a sweeping fraud at a troubled auto parts supplier that he led before the company collapsed into bankruptcy.
Stockman, 60, was one of four former top Collins & Aikman Corp. executives named in the federal indictment. Four other former company employees including a former treasurer have already pleaded guilty in the case, prosecutors said.
At a news conference, U.S. Attorney Michael Garcia said Stockman and his co-defendants “resorted to lies, tricks and fraud” from 2001 to 2005 to hide the truth about his failing company from investors and creditors.
Garcia said Stockman let the company’s employees mislead creditors about the company’s revenues and the ability of Collins & Aikman to pay its bills until the company was forced to enter bankruptcy proceedings in May 2005.
Read the entire story here.
business,financial statements ,balance sheet ,statement,assets,shareholders+equity,liaiblities ,common stock
Labels: Fraud Charges
posted by cathy at 11:14 AM
0 comments
