CarbonMeta Technologies Inc (COWI)

[SPIN]

OT... sorta.

The SEC's complaint, filed in U.S. District Court for the Southern District of Florida, alleges that Brooks engaged in a pervasive accounting fraud at DHB between 2003 and 2005, violated insider trading laws in 2004, and used millions of dollars in corporate funds to pay personal expenses.

"This case shows that the SEC will not tolerate the improper use of corporate funds to pay personal expenses," said Linda Chatman Thomsen, Director of the SEC's Enforcement Division.

David Nelson, the SEC Regional Director in Miami, added, "This case involves egregious conduct by a company CEO. As always, we aggressively pursue and prosecute company executives who betray the trust of public shareholders in order to line their own pockets."

http://sec.gov/news/press/2007/2007-221.htm

http://sec.gov/litigation/litreleases/2007/lr20345.htm

According to the SEC's complaint, Brooks also funneled millions of dollars out of DHB through fraudulent transactions with a related entity he controlled. The complaint further alleges that Brooks used company credit cards and checks to pay millions of dollars in personal expenses, including luxury cars, jewelry, art, real estate, extravagant vacations, personal aircraft usage, and horse training. As a result of the misconduct by Brooks, DHB filed false and misleading financial documents with the SEC and made false statements in company press releases.

http://sec.gov/litigation/complaints/2007/comp20345.pdf