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Government applies to freeze Brooks\'s assets

October 29, 2007
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The United States Attorney General’s office has announced the government has filed an application to restrain approximately $130 million of identifiable assets held by David Brooks, including bank accounts and brokerage accounts, following the Standardbred owner’s arrest last week on several charges that could send him to prison for the rest of his life.

 

Brooks, whose Perfect World Enterprises owned 2004 Three-Year-Old Colt Pacer of the Year and Little Brown Jug winner Timesareachanging and co-owned 1995 Jug winner Nick’s Fantasy, was arrested Thursday morning, Oct. 25, at his home in Manhattan by FBI and IRS agents on several charges, including securities and tax fraud, in connection to an investigation into his former company DHB Industries, which produces body armor for the U.S. military and police.

 
If convicted, Brooks, 54, faces a maximum term of imprisonment of 25 years for securities, mail and wire fraud, insider trading, and conspiracy to commit these offenses; 25 years for insider trading; 20 years for obstruction of justice and false statements; and five years for tax fraud, evasion, and filing false returns
 
The charges originally stem from an alleged “pump and dump” scheme in which the value of DHB Industries stock was falsely inflated, which allowed Brooks to sell shares and make a profit of $180 million. Soon after Brooks sold his shares the value of the stock tumbled from about $20 a share to about $1 a share. Brooks resigned his position as CEO of DHB Industries last year.
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