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SEC Sues Former Execs Over Backdating

Law360 (February 7, 2007, 12:00 AM EST) -- Federal regulators have filed action against two former executives of defense contractor Engineered Support Systems, claiming the pair backdated stock options to the tune of $20 million.

The U.S. Securities and Exchange Commission claims that for six years the firm’s ex-chief financial officer Gary Gerhardt and former controller Steven Landmann manipulated options dates to coincide with the stock’s historically low closing prices.

In suits filed Tuesday in Missouri district court, the SEC alleges that from 1997 to 2003 Gerhardt and Landmann granted $20 million in undisclosed,...
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