David Stockman, the Reagan-era U.S. economics official who publicly criticized administration fiscal policies, could face claims of lying to investors.
The Securities and Exchange Commission has notified Stockman it is investigating allegations that he misled investors in an auto parts company, the Washington Post said, citing anonymous sources involved in the probe.Stockman was a managing partner in Heartland Industrial Partners L.P.,, which took over management of a troubled company, Collins & Aikman.
The SEC has subpoenaed Collins & Aikman records.
Heartland invested heavily in the auto parts company but also received millions of dollars in management fees.Friends told the Post that Stockman did his best to save Collins & Aikman.
Stockman served as director of the Office of Management and Budget early in the Reagan administration.He caused a furor when he gave interviews to reporter William Greider suggesting that Reagan's approach to economics -- known as supply-side -- was a sham.
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