Former Reagan budget director charged with fraud

[Poiuyt]

NEW YORK (Reuters) -- U.S. prosecutors on Monday charged David Stockman, a former chief executive of Collins & Aikman Corp, and other former executives of fraud.

Stockman, a former Reagan administration budget director, and the other ex-Collins & Aikman (up $0.00 to $0.04, Charts) executives are accused of misleading the company's investors to hide its true financial condition, according to the indictment brought by federal prosecutors in Manhattan.

Facing pressures to keep up the company's financial performance, Stockman along with others "orchestrated a scheme ... to defraud C&A's investors, banks and creditors by manipulating C&A's reported revenues and earnings," according to the indictment.

http://money.cnn.com/2007/03/26/news/newsmakers/collins_aikman.reut/index.htm?postversion=2007032611