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Friday, July 19, 2024 | Back issues
Courthouse News Service Courthouse News Service

Execs Must Repay $10M For Backdating

ST. LOUIS (CN) - The former CEO of Engineered Support systems was sentenced to three years probation and must pay $7.8 million in restitution for backdating the company's stock options.

Michael Shanahan Sr., 68, pleaded guilty in July. Prosecutors say Shanahan got $7.8 million from the backdating, while his son, Michael Shanahan Jr., got $80,000, Gary Gerhardt got $1.8 million, and Steve Landmann $519,000.

Gerhardt will pay $1.8 in restitution and Shanahan Jr. will enter the Pre-trial diversion program supervised by the U.S. Probation Office.

Landmann faces 5 years in prison at his November sentencing.

In 1986, Shanahan Sr. led a group that bought the St. Louis Blues. He was the chairman of the team until 1995.

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