Board members settle SEC charges, pay $1.67M

AP News
Posted: Nov 10, 2011 1:16 PM
Board members settle SEC charges, pay $1.67M

Three former board members of a U.S. defense contractor will pay a total $1.67 million to settle federal civil charges of aiding accounting fraud at the firm.

The former directors of DHB Industries, which makes body armor, were permanently barred from serving as officers or directors of any public company under the settlement announced Thursday by the Securities and Exchange Commission. Cary Chasin, Jerome Krantz and Gary Nadelman neither admitted nor denied wrongdoing.

The SEC said in a lawsuit in February that the three failed in their oversight duty by allowing senior managers to overstate the company's income in financial reports from 2003 to 2005. The company changed its name to Point Blank Solutions Inc. in 2007 and has been operating while in bankruptcy proceedings since 2010.