Sandra Hatfield, 54, the company's former chief
operating officer, was hit with similar charges.
Brooks founded DHB, which moved from Westbury,
L.I., to Pompano Beach, Fla., last year, and served as its chairman and
chief executive officer. He resigned last year as the scandal erupted.
According to the indictment, Brooks lined his
pockets by having DHB underwrite his lifestyle and by
artificially inflating the value of company stock.
He allegedly reaped $185 million by selling DHB
stock when he learned that 6,000 bullet-proof vests the company made were
about to be recalled for being faulty and not able to block bullets.
Hatfield, who left the firm in 2005, allegedly
made $5 million in the scheme.
Brooks also was accused of
evading taxes by giving money to charities he ran.
Brooks made headlines in November 2005, when he
rented two floors of the Rainbow Room for the bat mitzvah of his daughter,
Elizabeth.
He reportedly sent the company jet to fly
Aerosmith in from Pittsburgh, paying them a cool $1
million. In return, they let his nephew play drums.
In honor of the band's appearance, Brooks changed
from a black leather suit into a magenta suede biker outfit covered with
chains.
The indictment said the body-armor tycoon spent
$122,000 of company cash on iPods and digital cameras for his guests. It
also revealed he shelled out $20,000 for leather-bound invitations to his
son's bar mitzvah in 2000.
Brooks pleaded not guilty at his arraignment in
federal court in Central Islip, L.I., and was held without bail pending a
hearing Monday.
His lawyer, Paul Shechtman, said Brooks "grew up
in Brooklyn and that means he doesn't run away from a fight."
Shechtman asked for bail of a mere $50 million.
Prosecutor John Martin asked that no bail be granted, calling Brooks a
serious flight risk.
"In my opinion, he will spend the rest of his
life in jail," the prosecutor said. "Every couple of months, we uncover
new crimes and new frauds he has committed."
Hatfield is expected to be arraigned next week.