Ex-Defense Contractor CFO Arrested Over Backdating

Law360, New York (March 27, 2007, 12:00 AM EDT) -- The former chief financial officer of defense contractor Engineered Support Systems Inc. was arrested and released Tuesday on 10 counts of securities fraud.

Gary Gerhardt and other Engineered Support Systems executives are accused of defrauding the company and its shareholders by backdating stock options on at least eight occasions between 1996 and 2002.

Gerhardt’s was released on $50,000 unsecured bond. He is scheduled for arraignment Thursday.

The 10-count indictment, which was unveiled Monday, charged Gerhardt with one count of falsifying books and records of a publicly...
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