Two former executives at a leading armor supplier to the American military, DHB Industries, have been charged with insider trading, fraud, obstruction of justice, and tax evasion in a scam that netted them more than $200 million, prosecutors announced this morning.

The company’s founder, David Brooks, 53, and a former chief operating officer, Sandra Hatfield, 54, are accused of manipulating financial records to increase reported earnings and profit margins to inflate stock price, according to the federal indictment. Prosecutors say the scheme earned Ms. Hatfield $190 million, and Mr. Brooks $5 million.

“Corporate executives who line their own pockets at the expense of their shareholders flaunt the responsibilities they owe their companies and the investing public,” U.S. Attorney Benton Campbell said in a statement.

The former executives are also accused of failing to report multimillion-dollar bonuses to the IRS, and using company funds to pay for personal expenses including vacations, jewelry, and cosmetic surgery.

Mr. Brooks will be arraigned this afternoon before a judge in Islip. If convicted, he faces up to 70 years in prison. Ms. Hatfield’s arraignment has not yet been scheduled.

Ms. Hatfield was previously indicted in 2006 for an alleged role in securities fraud.

The company, which changed its name to Point Blank Solutions on October 1, manufactures and sells body armor to branches of the American military and to various federal and state law enforcement departments. Nearly all American soldiers fighting in Iraq and Afghanistan wear armor by DHB.