ST. LOUIS, July 20 (UPI) -- The former head of Engineered Support Systems, under federal investigation for alleged stock violations, has been indicted on criminal charges in St. Louis.
Former Chief Executive Michael Shanahan Sr., and his son Michael Shanahan Jr., were named Thursday in a 12-count indictment by the U.S. attorney's office in St. Louis, Mo., alleging securities violations, fraud and conspiracy.
A week earlier, the Shanahans were sued by the U.S. Securities and Exchange Commission on similar charges, the St. Louis Post-Dispatch said.
Prosecutors accuse the Shanahans and Gary Gerhardt, who was the company's chief financial officer, of defrauding investors by regularly backdating stock options issued to company executives and directors.
