David Brooks, accused of looting his then Westbury-based body-armor company in 2007 to support an over-the-top lifestyle, has had his bail revoked and been jailed after federal officials said he orchestrated several complex schemes to conceal tens of millions of dollars in assets overseas.
One of the schemes was uncovered by London police who were conducting a separate money-laundering investigation at a safe-depository in the British capital, according to federal prosecutors.
Among the conditions of Brooks' being allowed to live in his Manhattan condo while awaiting trial was that he and his family, including his brother, Jeffrey, would account for all their assets and keep them in monitored accounts in the U.S. Attorneys for Brooks repeatedly have said that all of his and his family's assets have been reported to the government.
But according to an affidavit filed Friday by FBI agent Angela Jett, Brooks did not report the assets he hid in one scheme he had code-named "Czerny Kot," Polish for Black Cat.
Brooks set up a bunch of shell companies to hide at least $25 million overseas, Jett said. The shell companies were set up in order to funnel money to Brooks through a bank in the tiny republic of San Marino, Jett said.
In a second scheme uncovered inadvertently by London police conducting a separate money-laundering investigation, Jett said, Brooks' brother Jeffrey bought a safe-deposit box in a London depository. The brother was then recorded on video removing duffel bags from the safe-deposit box, the affidavit said.
The day after Jeffrey Brooks left the depository, a person allegedly working for the Brooks brothers rented a safe-deposit box in his own name and visited it only on that day, Jett said. When police opened the box as part of their money-laundering investigation, they found $3.6 million in pounds, euros and U.S. currency in envelopes that included the letterhead "Jeffrey Brooks Securities," the affidavit said.
Brooks' lead attorney, Kenneth Ravenell, declined to comment on the arrest or the affidavit.