Scammer’s aide gets seven years

Bill San Antonio

The former chief operating officer for the largest supplier of body armor for U.S. law enforcement and military officials has been sentenced to seven years in prison for her role in a massive fraud scheme perpetuated by the company’s owner.

Sandra Hatfield on Friday was ordered by U.S. District Court Judge Joanna Seybert in Central Islip to also repay $1.8 million in illicit profits she made while working for the Westbury-based DHB Industries, Inc. Following her release from prison, Hatfield will serve three years of supervised release.

In her ruling, Seybert said Hatfield will also be ordered to pay restitution to victims frauded by DHB Industries. The amount in restitution will be determined within the next 30 days.

Hatfield in 2010 was convicted alongside DHB owner David Brooks on nine counts of conspiracy, insider trading, securities fraud and obstruction of justice for a $200 million fraud scheme.  She later pleaded guilty to filing a false income tax return. Brooks, of Old Westbury, was sentenced in August 2013 to 17 years in prison.

“DHB made millions from supplying body armor to protect those who serve this country in the U.S. military and our law enforcement ranks. But rather than honor the bravery of those who donned DHB’s products, Hatfield preyed upon investors, lied to them, and looted the company, all the while wrapping herself in the American flag,” said U.S. Attorney Loretta Lynch.

During her eight-month trial, Hatfield was found to have helped funnel millions of DHB funds to Brooks and conceal the company’s illicit relationship with Tactical Armor Products, a company which prosecutors said was established in Brooks’ wife’s name but was really run by Brooks himself.

Prosecutors said Hatfield also falsely reported DHB’s net income and profits in its filings with the Securities and Exchange Commission, adding non-existent inventory to the company’s records.

Hatfield sold more than $5 million in DHB stock in 2004 even though prosecutors said she knew the company’s $20 price per-share had been inflated by her fraudulent accounting.

But after those sales, DHB’s stock plummeted and the company was de-listed from the American Stock Exchange.

“The real shame is that DHB Industries provided vital products to the men and women of the U.S. military and to law enforcement, but Ms. Hatfield and Mr. Brooks used their positions in the company to satisfy their own voracious greed,” said Internal Revenue Service agent Shantelle Kitchen. “Corporate officials hold positions of trust and that trust is broken when they abuse their power by committing crimes of selfishness.” 

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