Ex-Reagan Budget Chief Charged In Fraud

David Stockman, President Reagan's Budget Director, Charged In Securities Fraud Probe

(CBS/AP)  David Stockman, a former top budget official in the Reagan White House, and three others were charged Monday in an alleged securities fraud conspiracy that embroiled one of North America's largest auto parts companies before the supplier collapsed into bankruptcy.

Stockman was the former chairman and CEO of Michigan-based Collins & Aikman Corp. He served as budget director under President Reagan in the 1980s and also served in Congress as a Republican from Michigan.

An indictment unsealed in U.S. District Court in Manhattan charged Stockman and three others with conspiracy to commit securities fraud, making false statements in annual and quarterly reports, making false entries in books and records, lying to auditors as well as committing bank fraud, wire fraud and obstruction of an agency proceeding.

The others charged in the indictment were J. Michael Stepp, David R. Cosgrove and Paul C. Barnaba. It was not immediately clear who was representing them.

An investigation had concentrated on Stockman and other corporate officers from Collins & Aikman.

A spokesman for Collins & Aikman said he had no immediate comment.

The indictment said the crimes occurred as Stockman served on the board of directors of Collins & Aikman from 2000 through May 2005. He was chairman of the board from August 2003 until May 2005. Stepp was vice chairman of the board of directors. Cosgrove and Barnaba also were employed by C&A.

Southfield-based Collins & Aikman filed for Chapter 11 bankruptcy protection in May 2005. Its products included interiors, carpets, acoustics, fabrics and convertible tops.

Federal authorities planned a news conference to discuss the case, and declined to comment before then.

Stockman is no stranger to public embarrassment, reports CBS News White House correspondent Mark Knoller. As budget director for Ronald Reagan 26 years ago, Stockman was called on the carpet for suggesting the president's economic policies were a ruse to lower tax rates for the rich.

Stockman later recanted his comments, apologized for them and offered his resignation. He stayed on, but he got a tongue-lashing from Reagan.

[realpatriot1]

Oh, so that's what supply-side economis is....you supply your pockets! Now I get it!

[david1737]

The entire Repub. party is fraut w/ unbridled corruption. Enough is Waaaaaaaayyy toooo Much!

[iceman_1960]

From the posted article:

"The investigation [the SEC investigation of the Harken Energy Scandal] was criticized on several grounds, including the fact that the subject of the inquiry, Bush, was never interviewed by the SEC.

A pertinent point here is that the SEC Commissioner had been appointed by President George H. W. Bush Sr., and its counsel had worked for Bush Jr. negotiating the purchase of the Texas Rangers.

On Oct. 18, 1993, an SEC memo declared the investigation has been terminated as to the conduct of Mr. Bush, and that, at this time, no enforcement action is contemplated with respect to him. The letter also stated that the investigation's termination must in no way be construed as indicating that the party has been exonerated or that no action may ultimately result from the investigation."

[iceman_1960]

"ALL REPUBLICANS ARE CROOKS. Day after day more crooks being found out."
Posted by rharrin1

Not all. Most. Lets be fair.

Young Dubya engaged in insider trading at Harken Energy and netted almost a million dollars. (He claimed that, although sitting on Harken's Audit Board, he was "unaware of the company's financial condition." Believe that, do you ?)

Funny how those who profess to be horrified about Hillary Clinton's $100,000 cattle futures profits, never get around to Bush and Harken...

Young Dubya avoided a long prison term ONLY because his dad was the sitting president who had appointed the head of the SEC.

Read all about it:

http://en.wikipedia.org/wiki/Harken_Energy_Scandal

[rharrin1]

ALL REPUBLICANS ARE CROOKS. Day after day more crooks being found out.

[iceman_1960]

"David Stockman... charged Monday in an alleged securities fraud conspiracy..."

Stock man, huh ?

Lets not have a rush to judgment. After all, none of us really understands what's going on with all these numbers.

[iceman_1960]

"Stockman was called on the carpet for suggesting the president's economic policies were a ruse to lower tax rates for the rich."

He called them a "Trojan Horse."

Beware of Geeks bearing gifts...

[alphaa10-2009]

nikoski said, "Another "clean" Republican caught with his hands in the cookie jar. However it will be so "un-patriotic" to charge him with fraud. After all he waves the American flag and sings "America the Beautiful"..."
---

P.T. Barnum said a sucker is born every minute. The GOP has taken this to heart for decades, and demonstrated its truth with a vengeance in 1994. A legion of suckers authorized Reagan and Bush1, both of whom created a huge corporate clientele to fund their every campaign whim.

This is the primary reason federal financing of elections never got much play from the White House in those years-- why spoil a bonanza? Give corporate America what it wants, and corporate America will keep you in cash.

Under the GOP, government was for sale to the highest bidder. Voters need not apply.

[alphaa10-2009]

jerryomara said, "Was this the guy that came up with The "Trickle Down Theory". I was no ecomomist at the time but I knew that Rich people dont leak..."
---

Actually, many GOP rich leak all over Americans at every opportunity, if you get the drift. It's their way of showing their deeply-felt disrepsect.

Stockman became famous for commenting, "The hogs (lobbies besieging Reagan) are really feeding now." He was entirely correct, which displeased Reagan.

"Trickle-Down" is not a theory but Arthur Laffer's observation total taxation kills all enterprise, so a punitive tax rate collects no revenue. Laffer did not go on to prove the corollary-- no taxation may prove a powerful incentive, but this policy also collects no revenue. However, Bush2 demonstrated this principle beyond any doubt.

Reagan proved you can fool some of the people all of the time. These are called Republicans. Reagan proved also you can fool some of the people most of the time. These are called independents.

Reagan also taught the MSM to feed from his outstretched hand with photo-opportunities and sound bites, while his minions plotted many of the dark schemes launching the careers of Cheney and Rumsfeld.

[randalds]

Reagan was an idealist of the worst kind, the stupid kind. He heard the sugar coated portions of small government, low taxes and independence, but never heard the downside of any of them. He bought the right wing myth hook, line and sinker. He was a fool used by those smarter then him to change laws and to send this country into a direction that favored the rich and pis*sed on everyone else. His administration was the real beginning of the end for the middle class the the start of the class warfare between the rich elite and everyone else who has a conscience. Not too surprisingly when he died he was somehow elevated to sainthood just like Nixon was. That is because it's considered in this society to be unseemly to speak ill of the dead. Still that doesn't change the fact that he was a horrible president that set into motion the downfall we're experiencing under the monkey in the White House now. Someday history will record them both as two of the worst presidents ever. Not to shock his worshippers too much because in comparison to this Bush he wasn't actually too bad, but in the march of history Reagan really, really, really sucked as a president. His Alzheimer's was all ready in full bloom before he was elected to his first term. He was a shi*ty president.

[scott4261]

The Reagan Administration is the root of this latest wave of Republican rot. Good riddance!

[mcvet]

What a bunch of little old granny whiners! Geez.
Posted by us_infidel at 03:25 PM : Mar 26, 2007
+ report this comment

No! A Little Old Granny Whiner say's, Oh it's all the fault of "Liberals" or it's because of the "Liberal" media or they are being set up because they are in the Party! Now THATS whining there Sparky!! ROFLMAO Sieg Heil

[randalds]

This is a surprise to anyone?

[tejasdemo]

I'm sure the next story we will hear will be the screaming of another born again republican.

He'll probably hook up with "Terminix" Tom Delay and run for office under the rich crook who got caught and now needs to somehow find their way back into the game party-and, oh yea, did I mention that I'm a born again Christian too ?!

[us_infidel]

What a bunch of little old granny whiners! Geez.

[l8c6]

So will a little blood letting from a few small apples quench the thirst for justice or will a generation not let down its guard and slip into apathy for the duration of their lives again. I hope the american people grow in curiostiy and not assume the government will take care of them but rather become aware that they are the government and must be involved.

Tom Delay was recently cited as observing Hitler discovered the big lie is more effective than the little lie.

The big lie is not that our government is to be hated in the manner Reagan instructed. The actual big lie is that the private business sector can do a better job running our government than true public servants. We the people have failed to remain vigilant allowing these corporate prostitutes to get involved with government without our scrutiny. We bought into their deception that they work more efficiently. They are most efficient at privatizing and funneling the national treasury into their own hands. It appears this ex-Reagan player has fallen out of the protective ring of the right wing.

People working the public sector who have spent their lives working for multinational corporations so often are there for private special interests. This merging of roles leads to fascism. Mussolini comes to mind.

[terrapin78]

Reagan's vice president should be investigated thoroughly!!! Where is the $5 billion from Iran Contra days?

[l8c6]

For every one of these crooks uncovered I have the sense there are even bigger ones up the food chain.

[agnim]

"Ex-Reagan Budget Chief Charged"

This is about 20 years late after those thieves emptied the nation's treasury and saddle Americans with 100, billion dollar Savings and Loan Scandal.

We should start proceedings now for the present depletion of the nation's treasury by the current President.
Let's not wait until AD! LOL