David Stockman, who served in the Reagan administration from 1981 to 1985, has been accused of perpetrating securities fraud. Stockman along with other executives of automotive manufacturer Collins & Aikman is accused of to mislead investors while inflating earnings. The fraud charges had been teased since at least late last year.

Stockman formerly served as chairman and chief executive Collins & Aikman and is also the co-founder of a private-equity firm - one of the largest shareholders in the auto-parts company.

Collins & Aikman itself has already reached settlements, with both the SEC and the U. S, Attorney for the Southern District of New York. The deal, announced earlier this week, allows Collins and Aikman to avoid prosecution and substantial fines.

Check out more on the Stockman indictment via the Chicago Tribune.

-- MDT

Labels: accounting fraud, Collins and Aikman, David Stockman, SEC, securities