Government Readies Stockman Indictment
By Michelle Krebs March 21, 2007Federal prosecutors are preparing criminal charges against former budget director David A. Stockman for incomplete disclosures and improper accounting practices he allegedly endorsed while at the helm of Michigan automotive supplier, Collins & Aikman Corp., according to today's Washington Post.
Citing unnamed government sources, the paper reports indictments could come as early as Monday, and the Security and Exchange Commission is also investigating.
Stockman, now 60, was CEO of the auto interiors supplier from 2002 until it filed Chapter 11 bankruptcy protection in 2005. Hundreds of millions of dollars have been spent to try to keep Collins & Aikman afloat since it supplies parts to nearly every automaker. The company now is being sold in pieces in bankruptcy court. Meantime, the company, its board and former executives are being sued by bondholders and shareholders.
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