SEC Charges Former Officers of Military Body Armor Supplier with Financial Fraud
Washington, D.C., Aug. 17, 2006 - The Securities and Exchange Commission today announced the filing of securities fraud charges against Dawn M. Schlegel and Sandra L. Hatfield, two former officers of DHB Industries, Inc., a major supplier of body armor to the United States military and law enforcement agencies. The SEC alleges that Schlegel, DHB's former Chief Financial Officer, and Hatfield, DHB's former Chief Operating Officer, routinely overstated the value of the company's inventory and directed the booking of numerous fraudulent journal entries in order to reduce the company's cost of goods sold. This had the effect of falsely increasing the company's gross profit margins, and in some instances, net income. As a result of their misconduct, DHB materially misstated key financial information in filings with the SEC and in public statements.
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