© 2022 St. Louis Public Radio
Play Live Radio
Next Up:
0:00
0:00
Available On Air Stations
Other

Former officials at St. Louis defense contractor indicted on stock fraud charges

2657179-943120757.jpg
(file)
/
Michael Shanahan Sr.

By AP/KWMU

St. Louis – A federal grand jury has indicted three former top officials of St. Louis defense contractor Engineered Support Systems.

Michael Shanahan Senior, his son, Michael Shanahan Junior, and Gary Gerhardt, are named in the indictment.

Federal regulators say the men backdated stock options in a scheme that enriched executives and board members by nearly $20 million.

The charges include falsifying statements, mail fraud and wire fraud.

The senior Shanahan was the CEO of Engineered Support Systems and a former owner of the St. Louis Blues. Michael Shanahan Jr. was a board member and Gerhardt was the company's chief financial officer.

Backdating stock options is not illegal if properly disclosed to shareholders.

The indictments follow a civil suit the Securities and Exchange Commission filed last week.

Other

Send questions and comments about this story to feedback@stlpublicradio.org.