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 NEW YORK (AP) - David Stockman, the former budget director in the Reagan White House, was charged Monday with overseeing a sweeping fraud at a troubled auto parts supplier that he led before the company sought bankruptcy protection.
Stockman, 60, was one of four former top Collins & Aikman Corp. executives named in the federal indictment that was unsealed Monday. Four other former company employees, including a one-time treasurer, have already pleaded guilty in the case, prosecutors said.
At a news conference, U.S. Attorney Michael Garcia said Stockman and his co-defendants "resorted to lies, tricks and fraud" from 2001 to 2005 to hide the truth about his failing company from investors and creditors. The company was forced to enter bankruptcy proceedings in May 2005 — one of several collapses to rock the auto parts industry in recent years.
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