President’s Uncle Embroiled in Backdating Scheme

By Katie Hauser

Published on February 07, 2007

Bush was a member of the audit committee and earned $2,500 monthly from the defense contracting company as a consultant. He has not been named in the recent charges, which are currently aimed at former CFO Gary Gerhardt and former controller Steven Landmann.

Prosecutors allege that Gerhardt and Landmann were behind a backdating scheme that lasted more than six years, and contributed to more than $20 million in unauthorized pay, some of which went to Bush. It is estimated that outside directors, including Bush, also profitted approximately $6 million in unauthorized stock options, from more than 132,000 shares of ESSI stock.

Also under investigation are Michael F. Shanahan Sr., a co-founder of ESSI, his son, and son-in-law.

ESSI, which was based in St. Louis, is currently owned by DRS Technologies, Inc. Before the company was sold, records show that Bush held more than $3.8 million in company stocks.

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