A former Michigan congressman and Reagan-era public official is facing a criminal indictment relating to his time as CEO of auto supplier Collins & Aikman. David Stockman became CEO of C&A in 2003, after having orchestrated a buyout of the firm in 2001.

Federal investigators are interested in a variety of perhaps overly optimistic statements Stockman made in 2005 about C&A's health in the months before the company declared bankruptcy. Stockman will also likely face an SEC probe into and civil charges arising from his activities during that time. It is thought Stockman may be indicted as soon as January '07.

More here.

-- MDT

Labels: Collins and Aikman, David Stockman, indictment, SEC