Email This Article | Print This Article | Reprints
[-] Text [+]

Before the DRS deal was approved in January 2006, Bush held ESSI shares
worth $3.8 million, SEC filings show.

Between 1995 and early 2005, ESSI's stock climbed nearly 900 percent as the
company sold cargo loaders, generators and trailers to the Pentagon. ESSI's
board was politically connected and included several retired generals.

The SEC on Tuesday accused ESSI's former chief financial officer, Gary C.
Gerhardt, and former controller, Steven J. Landmann, of orchestrating a
backdating scheme that spanned six years. In all, executives and directors
netted $20 million in unauthorized pay, according to the complaint filed in
U.S. District Court in St. Louis.

Outside directors received backdated options issued in 1996, 1998, 1999 and
2001, the SEC complaint alleges.
Reuters Pictures
Photo

Editors Choice: Best pictures
from the last 24 hours.
View Slideshow

Landmann has agreed to give back about $519,000 in option-related
compensation while paying $367,585 in penalties and interest. He did not
admit or deny the SEC allegations, and will be permanently barred from
serving as an officer of publicly-traded company.

Records unsealed in federal court in St. Louis late last year show that the
SEC is investigating Michael F. Shanahan Sr., who co-founded ESSI; his son,
who served on the board's compensation committee; and Shanahan Sr.'s
son-in-law, David Mattern, who was general counsel
--- Platinum Xpress/Win/WINServer v3.0pr5