Former hockey team owner pleads guilty on options

Discussion in 'Wall St. News' started by archon, Jul 23, 2008.

  1. archon


    Former hockey team owner pleads guilty on options

    Tuesday July 22, 4:03 pm ET
    By Jim Salter, Associated Press Writer
    Former St. Louis Blues owner Michael Shanahan pleads guilty in options backdating case

    ST. LOUIS (AP) -- A former owner of the St. Louis Blues hockey team faces sentencing later this year after pleading guilty to a federal charge for backdating stock options.

    In a plea agreement reached on Monday, former Engineered Support Systems Inc. co-founder Michael Shanahan Sr. also agreed to repay $7.9 million.

    In exchange for the guilty plea on one count of falsifying the records of a publicly traded company, the government dropped 11 other charges against Shanahan. The government also agreed to drop charges against his son, Michael Shanahan Jr.

    Assistant U.S. Attorney Jeff Jensen, who handled the case, declined comment because charges are still pending against another former Engineered Support executive, chief financial officer Gary Gerhardt.

    Shanahan did not have a listed phone number. His attorney, Barry Short, did not return a phone call seeking comment.

    Shanahan, 68, was the chief executive of Engineered Support Systems, a company that supplied military support and equipment. He led a group of St. Louis businessmen that bought the Blues from Harry Ornest in 1986. The group sold the NHL team in 1999...

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