Two of the most prominent businessmen in St. Louis are charged with a dozen counts of securities violations, fraud, and conspiracy. Michael Shanahan Senior and his son, Michael Junior have been indicted after a two-year investigation at Engineered Support Systems, Incorporated, a major defense contractor. Shanahan Senior is the former CEO at Engineered Support.
The former Chief Financial Officer of the company, Gary Gerhardt, also has been indicted.
The indictment says the three defrauded investors by backdating stock options issued to executives and directors of the company.
The Securities and Exchange Commission sued the Shanahans last week. Shanahan Senior at one time owned the St. Louis Blues hockey team.