David Stockman, Former CEO of Auto Parts Maker, and Other Former Executives With Securities Fraud

NEW YORK, March 26, 2007; An indictment was unsealed today revealing charges against David A. Stockman, the former President and CEO of Collins and Aikman Corporation (C&A), and seven other former members of C&A's management, U.S. Attorney Michael J. Garcia for the Southern District of New York, and Ron Walker, Inspector-in-Charge of the New York Division of the U.S. Postal Inspection Service (USPIS), announced today. The indictment unsealed in federal court in Manhattan charges Stockman with conspiracy, securities fraud, bank fraud, wire fraud, and obstruction of an agency proceeding, in connection with his participation, from December 2001 through May 2005, in a scheme to conceal from investors and lenders the truth about C&A's declining operating performance and financial results. The indictment also charges former C&A Chief Financial Officer J. Michael Stepp; former Controller David R. Cosgrove; and former Director of Purchasing Paul C. Barnaba. Four felony informations, filed today and last week, charge other C&A executives with related crimes. more...