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Latest Business News

Former CFO of Defense Company Indicted

Monday, March 26, 2007 3:49:09 PM
By JIM SALTER

ST. LOUIS (AP) - The former chief financial officer for the defense contractor Engineered Support Systems Inc. backdated stock options without disclosing his actions, then made false statements in reports to the SEC, the U.S. Attorney's office said Monday.

Gary Gerhardt, 62, of St. Charles, Mo., was charged in a 10-count indictment that includes one count of falsifying books and records of a publicly traded company; one count of conspiracy; four counts of making false statements in reports filed with the U.S. Securities and Exchange Commission; two counts of mail fraud; and two counts of wire fraud.

The indictment alleges that Gerhardt and others illegally backdated stock options on at least eight occasions between 1996 and 2002.


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