DHB "Where are They Now"

[billyjoe]

Just was doing a check on old crooked stock DHB , an old friend and probably an enemy to some here. After trading above 20 in late 2004, allegations of fraud against the CEO, CFO and other company officers lead to it being unlisted after dropping below 1.50/share in 2006. It eventually went as low as .50 and closed today at 2.36 on the pink sheets.

Especially aggravating to shareholders was when CEO and founder David Brooks sold 185 million dollars worth of stock after lying about earnings probably for years. Also made up the inventory numbers for bullet proof vests that turned out to be defective .Shortly after the sale he held a 10 million dollar party for his teenage daughter. He settled lawsuits for a mere 36 million plus a few million shares that turned out to be worth little. Poor Brooks is probably lounging around on his yacht or in his Pompano Beach mansion with the remaining 130+ million.

----------------billyjoe

[Websman]

I made some good money off of DHB.
I'm just glad dlad I got out when I did. When I saw Brooks dumping, my Vulcan intuition told me that it was time to take profits. Too bad I didn't make as much as he did...

[riverbabe]

Just was doing a check on old crooked stock DHB , an old friend and probably an enemy to some here. After trading above 20 in late 2004, allegations of fraud against the CEO, CFO and other company officers lead to it being unlisted after dropping below 1.50/share in 2006. It eventually went as low as .50 and closed today at 2.36 on the pink sheets.

Especially aggravating to shareholders was when CEO and founder David Brooks sold 185 million dollars worth of stock after lying about earnings probably for years. Also made up the inventory numbers for bullet proof vests that turned out to be defective .Shortly after the sale he held a 10 million dollar party for his teenage daughter. He settled lawsuits for a mere 36 million plus a few million shares that turned out to be worth little. Poor Brooks is probably lounging around on his yacht or in his Pompano Beach mansion with the remaining 130+ million.

----------------billyjoe

billyjoe, if you're still on the IBD forums, check out some of the DHB threads, like "DHB Redux" etc. river

[billyjoe]

billyjoe, if you're still on the IBD forums, check out some of the DHB threads, like "DHB Redux" etc. river

Thanks River,
I went back and read DHB redux and it's worse than I thought. At least 3 major crooks at the top. Where did they meet, in prison? Brooks still made out like a bandit. Wonder if he'll do any time.

------------billyjoe

[mystiky]

DHB memories

I remember shorting some of it at like $19 and saw it runup so I covered for a small loss. Then I saw those now-famous December 2004 "insider" selling into the upstream action.

Here are the links to those filings:

http://www.nasdaq.com/asp/quotes_sec.asp?SortBy=receivedate&AD=D&StartRec=81&EndRec=100&coname=DHB+INDS+INC&market=Other+OTC&PageName=Real%2DTime+SEC+Filings&selected=DHBT&SchParam=Ticker&SchValue=DHBT

Who would had known that someone can just get away like this by giving up only 15% of their profits.

[billyjoe]

Dawn Schlegal (CFO)and Sandra Hatfield (COO) may spend 20 years in prison. One of them, can't remember which, was either the highest paid woman executive in the U.S. or maybe it was just the state of New York around 2004. They apparently just pulled numbers out of the air for earnings such as "Hey we claimed 6 million in earnings last quarter, lets say it's 13 million this quarter" Then they dumped a few million in stock after the report was made public. Actually just a drop in the bucket compared to Brook's (CEO) take.

----------billyjoe