former head of a military contractor is on trial in Long Island for fraud, having allegedly used company funds to buy porn for his son, a burial plot for his mother, prostitutes for his employees and a ruby-encrusted American flag belt buckle worth $100,000.
David H. Brooks, the founder and former chief of body armor manufacturer DHB, is facing charges of fraud, insider trading and using millions of dollars in corporate cash to fund, as the New York Times puts it, "personal extravagance."
Using the company coffers -- which were flush with Pentagon money -- Brooks allegedly bought gifts for his family, including pornographic videos for his son, plastic surgery for his wife and textbooks for his daughter. He also bought luxury cars, country club memberships and a stable full of racehorses.
The prostitutes? They were to boost morale. From the NYT:
His lawyers also defended the hiring of prostitutes for employees and board members, arguing in court papers that it represented a legitimate business expense "if Mr. Brooks thought such services could motivate his employees and make them more productive."
And then there's the belt buckle, which prosecutors have reportedly been waving around in the courtroom: $100,000 worth of diamonds, rubies and sapphires in the shape of the American flag.
And there's more: Brooks spent $10 million on his daughter's bat mitzvah, hiring 50 Cent, Tom Petty and Aerosmith to perform. The leather-bound invitations cost $40,000 alone.
Brooks, who left the company in 2006, is also accused of running a $190 million scam. Brooks allegedly lied about his company's inventory by several million dollars, boosting the stock price just before selling all his shares.
He also faces charges of tax evasion and obstruction of justice. As the trial, which has heard the testimony of 70 witnesses, drags on, Brooks is apparently digging himself even deeper.
He may also face additional charges stemming from an episode last week when he was caught for a second time trying to smuggle into jail prescription anti-anxiety pills, which were similar to medication he was already taking at an unusually high dose. The pills had been hidden in pens that a supporter of Mr. Brooks's had placed near the defendant's seat in the courtroom.
The jury heard closing arguments in the case yesterday.
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