Opinion ID: 2511442
Heading Depth: 1
Heading Rank: 3

Heading: Related Actions

Text: On August 16, 2006, the United States Attorney for the Eastern District of New York filed a criminal indictment against Schlegel (DHB's former CFO) and Sandra Hatfield (DHB's former Chief Operating Officer) on charges that they inflated corporate earnings and profit margins, and then profited on those inflated earnings through the sale of DHB stock. United States v. Dawn Schlegel, et al., No. CR-06-550, 2006 WL 4969569 (E.D.N.Y.2006). The next day, on August 17, 2006, the SEC filed a civil complaint against Schlegel and Hatfield in the Southern District of Florida based on the same underlying acts as were charged in the criminal matter. SEC v. Dawn M. Schlegel, et al., No. CV-06-61251 (S.D.Fla.2006). [4] On October 23, 2007, Schlegel pled guilty to conspiracy to commit securities and tax fraud. Schlegel, No. CR-06-550, Dkt. No. 82 (Oct. 23, 2007). The next day, on October 24, 2007, the United States Attorney for the Eastern District of New York filed a superceding indictment against Brooks and Hatfield related to the same underlying facts as were previously charged. Id. Dkt. No. 51 (Oct. 24, 2007). [5] One day later, on October 25, 2007, the SEC brought a civil action against Brooks in the Southern District of Florida seeking disgorgement of $186 million under § 304. SEC v. David H. Brooks, No. CV-07-61526 (S.D.Fla.2007). [6]