Bloomberg News

Children of Point Blank’s Brooks Contest Forfeiture Order

September 17, 2012

(Corrects spelling of attorney’s name in third paragraph of story published Sept. 14.)

Three children of Point Blank Solutions Inc. (PBSOQ:US) founder David Brooks are contesting a $67.8 million forfeiture order issued against their father in a case alleging that he looted the company, and asked that the government return jewelry and investments given to them as gifts.

Victoria Brooks, 28; Andrew Brooks, 24, and Elizabeth Brooks, 19, filed a petition today in Central Islip, New York, federal court, seeking to pursue their claims to the assets. The Brooks children say they are entitled to frozen accounts in which tens of millions of dollars were invested as well as a 22- karat gold ring and diamond necklace and ring, a ruby and diamond “lips & tongue” charm necklace, and a Breitling men’s diamond watch.

“In light of the sentimental value of the jewelry,” the Brooks children asked that they have an opportunity to recover the items, according to the filing, signed by attorney Martin Perschetz.

“The Brooks children’s ownership interest in these assets vested prior to the alleged wrongdoing by Mr. Brooks and is superior to any right, title or interest of Mr. Brooks in the contested properties,” according to the filing.

Brooks was found guilty in September 2010 of securities fraud, wire fraud, insider trading and other charges in connection with a $185 million scheme in which he allegedly falsely inflated the military contractor’s value. Prosecutors alleged that he also spent company funds “lavishly” on himself and his family, buying items such as a Bentley and a Ferrari.

In August 2011, he further pleaded guilty to tax charges. He is scheduled to be sentenced on Oct. 26.

Bob Nardoza, a spokesman for U.S. Attorney Loretta Lynch in Brooklyn, declined to comment on the case.

The case is U.S. v. Brooks, 2:06-cr-00550, U.S. District Court, Eastern District of New York (Central Islip).

To contact the reporter on this story: Christie Smythe in New York at csmythe1@bloomberg.net

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net


Best LBO Ever
LIMITED-TIME OFFER SUBSCRIBE NOW

Companies Mentioned

  • PBSOQ
    (Point Blank Solutions Inc)
    • $0.26 USD
    • 0.01
    • 1.92%
Market data is delayed at least 15 minutes.
 
blog comments powered by Disqus