David Stockman Indicted, His Lawyer Says
March 26, 2007
Former Reagan administration Budget Director David Stockman has been indicted on securities fraud charges, his lawyer said in New York Monday.
Stockman, former chairman and chief executive of Michigan auto parts maker Collins & Aikman, was charged in a criminal grand jury indictment with issuing fraudulent and overly optimistic public statements about the company, attorney Elkan Abramowitz said.
Among others charged by federal prosecutors in New York are former Vice Chairman J. Michael Stepp and ex-controller David Cosgrove, Abramowitz said.
Collins & Aikman had no immediate comment.
Stockman resigned on May 17, 2005, five days before the company filed for bankruptcy. The company had 23,000 employees at the time.