U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 22154 / November 15, 2011
Securities and Exchange Commission v. Jerome Krantz, Cary Chasin, and Gary Nadelman, Civil Action No. 11-60432-CV-DIMITROULEAS/SNOW (S.D. Fla.)
Court Enters Final Judgments Against Three Former Directors at Military Body Armor Supplier to Settle SEC Charges
The Securities and Exchange Commission announced that the U.S. District Court for the Southern District of Florida ordered three former directors to pay more than $1.6 million in monetary sanctions to settle charges that they were involved in an accounting fraud at a major supplier of body armor to the U.S. military and law enforcement agencies. The settlements by Cary Chasin, Jerome Krantz and Gary Nadelman - former members of the board of directors at Pompano Beach, Fla.-based DHB Industries - impose permanent officer-and-director bars in addition to monetary sanctions.
The final judgments entered on November 10, 2011, find Chasin liable for disgorgement of $100,000 plus prejudgment interest of $5,723 and a penalty of $100,000; Krantz liable for disgorgement of $375,000 plus prejudgment interest of $21,464 and a penalty of $100,000, and Nadelman liable for disgorgement of $820,000 plus prejudgment interest of $46,935 and a penalty of $100,000.
The final judgments also bar Chasin, Krantz and Nadelman from acting as officers or directors of any issuer that has a class of securities registered pursuant to Section 12 and 15(d) of the Securities Exchange Act of 1934. In addition, the final judgments enjoin Chasin, Krantz and Nadelman from violating Sections 10(b) and 14(a) and Rules 10b-5 and 14a-9 of the Exchange Act and from aiding and abetting violations of Sections 10(b), 13(a), 13(b)(2)(A), and 13(b)(2)(B) and Rules 10b-5, 12b-20, 13a-1, 13a-11, and 13a-13 of the Exchange Act, and enjoins Nadelman from violating Section 13(b)(5) and Rules 13b2-1 and 13b2-2 of the Exchange Act. Chasin, Krantz and Nadelman agreed to settle the SEC's charges without admitting or denying the allegations.
For more information about this case, see LR-21867 (Feb. 28, 2011).