The founder of America's leading supplier of body armor to the U.S. military was sentenced Thursday to 17 years in prison for running a $185 million stock swindle in which he used the proceeds to finance luxuries such as lavish parties featuring Tom Petty, Aerosmith and the Eagles. David Brooks, 58, founder and ex-CEO of DHB Industries Inc., was convicted in 2010 of securities fraud and conspiracy. He and the company's ex-COO were accused of falsely inflating the value of the inventory of the company's top product, the Interceptor vest, to help meet profit margin projections.
Eastern District Judge Joanna Seybert (See Profile) said Thursday that Brooks displayed a total lack of remorse—"not a glimmer, not a whisper, not a moment of regret." She added that he "attempted to portray himself as a great patriot," attracting investors who thought they were doing something to protect troops in Iraq and Afghanistan. Last week, she ordered Brooks to forfeit nearly $60 million in proceeds from the insider-trading scheme. He also must pay restitution; an amount will be determined within 90 days.
