SEC Files Action in Fraud for “Round Tripping” Transactions against Collins & Aikman, along with its for CEO and Other Former Officers and Directors

In a civil action filed on March 26, 2007, in the U.S. District Court for the Southern District of New York, the SEC charged auto parts manufacturer Collins & Aikman Corporation (C&A), David A. Stockman, its former Chief Executive Officer and Chairman of the Board of Directors, and eight other former C&A directors and officers, with fraudulent schemes to inflate C&A’s reported income by accounting improperly for illusory supplier payments. The complaint alleges that Stockman and other defendants obtained false documents from suppliers designed to mislead external auditors and falsely inflate revenues.

For more see the Complaint filed in SEC v. Collins & Aikman et al.

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