A New York federal grand jury on Monday charged David Stockman, who served as President Ronald Reagan’s budget director, with conspiracy, obstruction of justice and six counts of fraud, saying he misled investors in Collins & Aikman, a troubled car parts maker.

Mr Stockman’s private equity company, Heartland Industrial Partners, was the single largest shareholder in Collins & Aikman, and he served as the company’s chief executive from 2003 to May 2005. The Troy, Michigan, company declared bankruptcy a week after he stepped down.