Military contractor and its ex-directors sued by the SEC

In the latest twist for Point Blank Solutions Inc.(Pink Sheets: PBSOQ.PK), the body-armor supplier (formerly known as DHB Industries Inc.) whose business with the government boomed after the Sept. 11 attacks, the SEC has sued three of the company’s former outside directors, claiming they ignored red flags that allowed DHB’s former executive, David Brooks, to loot the company to pay for things like cars, boats, his daughter’s multi-million dollar birthday party and prostitutes.

Brooks was found guilty in a criminal case last year. Point Blank — sued by the SEC along with the outside directors — has settled with the government by accepting a permanent injunction. The settlement still requires approval of the judge overseeing the company’s bankruptcy. 

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