Securities: Ex-Auto Parts CEO Charged With Fraud

David Stockman, a former chief executive of Collins & Aikman, and seven other former company officials, were charged with fraud and conspiracy related to believed financial misdeeds at the bankrupt auto parts manufacturer. Stockman and three others are believed to have misled investors about the company's financial state. Four other former company officials already have pleaded guilty to charges in the case.

Ex-Auto Parts CEO Charged With Fraud

Stockman "hid the full truth from the company's investors and lenders," says Manhattan U.S. Attorney Michael Garcia. Garcia added that Stockman and others "resorted to lies, tricks, and fraud" to help Collins & Aikman's financial performance when the company was unable to boost performance legitimately. Stockman is a former Michigan congressman and the head of the Office of Management and Budget during the Reagan administration.