Grand Ol' Police blotter -- David Stockman edition

Well, as Reagan's budget director it could be argued that hes already perpetuated a far bigger fraud, but, this will have to do.

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.

According to court papers, Stockman responded to a financial crisis at the company in 2005 by directing it to delay paying its bills as long as possible.

Meanwhile, Stockman allowed the company's employees to mislead creditors about the company's revenues and the ability of Collins & Aikman to pay its bills, prosecutors said.

The government said Stockman personally decided which of the company's suppliers and creditors would get paid and personally managed all of C&A's liquidity during the crisis.

The indictment also accused Stockman of misleading investors, saying he wanted to hide his own and other senior management's involvement in a fraudulent scheme to skew the company's accounting to hide its troubles.

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