ST. LOUIS - 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 US$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 lawyer, Barry Short, did
not return a phone call seeking comment.

The 68-year-old Shanahan 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.