Former Collins & Aikman Corp. CEO David Stockman is accused of securities fraud in an indictment unsealed by federal authorities today. According to a story on Automotive News' Web site, Stockman "is accused of securities fraud for accounting irregularities and incomplete financial disclosure in the months leading up to the bankruptcy filing of Collins & Aikman in May 2005." (I'm linking to the magazine's Web site because you'll need to register on the site to get the full story). Three other former C&A executives also were indicted: former vice chairman Michael Stepp; former controller David Cosgrove; and Paul Barnaba, former director of financial analysis in the purchasing department. Automotive News also has a story on the Web, and in its March 26 issue, that says C&A's bankruptcy has cost North American automakers $665 million in loans, price supports and operating subsidies. Some 80 percent of that has been borne by the Big 3. C&A was the No. 1 injection molder in North America last year, according to our ranking, but the company is in the process of selling its plastics assets.
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