Former Reagan Aide (David) Stockman Facing Possible Indictment [View All]

http://blogs.abcnews.com/theblotter/2006/12/former_reagan_a.html

Former Reagan Aide Stockman Facing Possible Indictment

A federal grand jury in New York may be asked as soon as next month to indict a top aide in the Reagan White House, David Stockman, on fraud charges, federal officials tell ABC News.

The officials said the investigation of Stockman, a former congressman who ran the Office of Management and Budget in the Reagan administration, centers on his role as CEO of a now bankrupt Michigan auto parts company, the Collins and Aikman Corporation.

The investigation has focused on whether Stockman and other corporate officers misled investors about the company's financial health.

Stockman's lawyer said his client had done nothing wrong and that reports of a pending indictment are premature. "We have not been told he is a target and are still hopeful the matter will be resolved without any further action by the U.S. Attorney's Office," said Elkan Abramowitz. He said Stockman has cooperated fully in the investigation, which was begun by the Securities Exchange Commission last summer.