By Bill Raack, KWMU
St. Louis, MO – The former CEO of Engineered Support Systems in St. Louis - Michael Shanahan - has been sentenced to three years probation and ordered to pay back nearly $8 million.
Shanahan pleaded guilty in July to securities fraud. The Securities and Exchange Commission had sued Shanahan and his son, Michael Junior, for backdating stock options while at Engineered Support Systems.
Shanahan did not admit orchestrating the scheme, but in his plea agreement he admitted that he knowingly signed stock option award letters with a false date. He agreed to pay back $7.8 million.
The elder Shanahan had faced the possibility of 15 to 21 months in prison.