Ex-Reagan Budget Director Charged With Accounting Fraud

Collins & Aikman Corp accused of "Enron" type of scandal

A former top budget official from the Reagan administration has been charged today in a securities fraud case involving one of America's largest auto parts companies just before the company folded and went bankrupt. David Stockman, who serviced as budget director for Reagan was the former chairman and chief executive officer for the company, Collins & Aikman Corp. He, along with three others is charged with securities fraud, making false statements in annual and quarterly reports, making false entries in books and records, and lying to auditors as well as committing bank fraud, wire fraud and obstruction of an agency proceeding. At this time, the company has made "no comment." Yet another case of a company altering it's financial records in an effort to keep investors investing even though things are not going well with the company. It's crazy how many times we've seen this type of investigation happen since Enron, another highly publicized accounting disaster that ultimately left thousands of investors and employees broke.