Former defense company CFO indicted for fraud; Bush's Uncle "Bucky" reaped $450K

[ProSense]

Former defense company CFO indicted

By JIM SALTER, Associated Press Writer Mon Mar 26, 3:58 PM ET

ST. LOUIS - The former chief financial officer for the defense contractor Engineered Support Systems Inc. backdated stock options without disclosing his actions, then lied to federal investigators about it, the U.S. Attorney's office said Monday.

Gary Gerhardt, 62, of St. Charles, Mo., faces a 10-count indictment that includes one count of falsifying books and records of a publicly traded company; four counts of making false statements in reports filed with the U.S

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Federal regulators earlier filed suit alleging that Gerhardt directed Landmann to backdate options. That lawsuit said employees, directors and executives got an extra $26 million in pay because of the backdating.

One of President Bush's uncles, William H.T. Bush, known as "Bucky," was among those directors, documents showed. William H.T. Bush is the youngest brother of former President George H.W. Bush and was a nonexecutive director of Engineered Support Systems starting in 2000.

Bush and the others who sat on the board were not accused of any wrongdoing in the SEC's civil lawsuit in February that named Gerhardt and Landmann.

William H.T. Bush made about $450,000 in January 2005 by exercising his company stock options and selling shares, his filing with the SEC shows. Five other executives and directors also cashed in on the company's rising stock price at the time.

The stock price was bolstered by record income, mainly from increases in the company's military contracts.

link

[Octafish]

1. Unka Bucky is a Pioneer

Warmongery. Very nice work, if you can get it.

William H.T. ("Bucky") Bush, an uncle of George W. Bush, joined the board of directors of the St. Louis based company Engineered Support Systems in March 2000. (See: http://www.engineeredsupport.com/) Bucky Bush was one the Bush “Pioneers,” the campaign contributors who raised more than $100,000 in the 2000 presidential election. Engineered Support Systems has three areas: light military support equipment, heavy military support equipment, and electronics/automation systems. Since 2000, following the presidential election and the 9-11 attacks, the company's federal contracts, revenues and its stock value have all gone up. Engineered Support Systems has been in the top 100 contractors with the DoD since 2001. It’s contracts with the U.S. military have totaled over $1 billion.

On May 1, 2003, Engineered Support Systems acquired Maryland-based Technical and Management Services, TAMSCO on May 1, 2003. (See http://www.tamsco.com/.) The following week TAMSCO announced that it had “implemented a leading edge communications technology to support U.S. Army logistics operations in the Middle East upon the successful fielding of two Time Division Multiple Access (TDMA) satellite terminals as part of the Coalition Forces Land Component Command (CFLCC) project in Iraq.” According to the company, “This marked the first time that TDMA technology had been utilized by the U.S. Army for satellite communications.”

In February 2003, before the invasion of Iraq, TAMSCO began its satellite communications network linking Germany, Iraq and the U.S. In a period of less than two and a half months, TAMSCO identified the most cost-effective technology; procured, integrated, tested and shipped the equipment; trained soldiers on its installation and maintenance; installed an antenna hub site in Germany; installed the network equipment; and established a help desk operation in Kuwait.

The Air Force and Army were both offering contracts. The Air Force awarded TAMSCO a $44.2 million contract for a radar system in June, another $11.7 million in orders in July, and more than $21.8 million in contracts in August. The Army provided a contract for a development project totaling $700,000 in June, and $12.8 million in contracts in August 2003.

Engineered Support Systems' enterprises are profitable for Bucky Bush. He received consulting fees of $2,500 a month in 2002 for serving on its audit committee, as well as options to buy thousands of shares of stock at $28.42 a share. The stock now trades at $62.50 a share. As of January, he owned 33,750 shares, along with his portion of 3.3 million shares owned by all the firm's officers and directors as a group. The company paid him another $125,000 in fees.

SOURCE...

http://www.democracyrising.us/content/view/57/81/

Merchants of Death, Inc.

[seemslikeadream]

2. Bucky!

:hi:

http://us.news2.yimg.com/us.yimg.com/p/net/20050223/capt.932dd3c44bc091f362b86a62028cd3bb

..."Daddy Warbucks".

<snip>

Published on Tuesday, January 14, 2003 by the Prince George's Journal (Maryland)
The Bush `Warbucks' Family Cashes In
by Margie Burns

William H.T. (``Bucky") Bush, an uncle of George W. Bush, is on the Board of Directors of a company which will benefit substantially from war with Iraq, according to financial analysts. The company, Engineered Support Systems, is based in St. Louis. William H.T. Bush was also a major Bush donor and campaign fund-raiser.

Astute business articles have boosted the company's stock this fall. As Russ Mitchell, writing in Smart Money, put it: ``War may not be healthy for children and other living things (not in the short run, anyway), but it's healthy for military stocks, right? It depends on what you mean by health. Consider Engineered Support Systems, which makes biological and chemical filtering and decontamination equipment, among other things.''

Hundreds of stocks bombed to record lows, but Engineered Support was one of few to fly the other way, hitting a record high of $61.25 on Sept. 16. The closer the U.S. gets to war in Iraq, the better things look for the St. Louis, Mo., company. Its specialty is military logistics and support; it makes stuff that helps the services get supplies from here to there in a hurry.

<more>

<link> http://www.commondreams.org/views03/0114-07.htm


Uncle Bill "Bucky" Bush and dirty bucks

There is another Uncle we don't here much about. We've seen Uncle Jonathan's lnvolvement with the Riggs terror Bank and Uncle Prescott Jr. from the 80's.

Now I present Uncle (fast buck) "Bucky".

http://www.bushnews.com/april2.htm

HOW JEB AND GEORGE MAKE A BUCKY BY PRIVATIZING GOVERNMENT
Buried in the Legislature's budget bill is a proposal by Gov. Jeb Bush to save $700,000 by privatizing elevator inspections. Officials at the state Department of Business and Professional Regulation told The St. Petersburg Times that private companies already do 87 percent of the state's inspections. So what's the catch? Turns out William ``Bucky'' Bush, the governor's uncle and a fundraiser for George W. Bush's presidential campaign, owns a 12.5 percent interest in National Elevator Inspection Services of St. Louis. Could that have anything to do with the governor's proposal? No, no, of course not. ``That whole line of thinking is very annoying and very insulting,'' says Bucky. But if it happens, he'll locate an office in the state and go after the business, he adds. Definitely a man headed to the top. -- more Miami Herald Editorial <http://www.miamiherald.com/content/today/opinion/editorials/digdocs/065392.htm >

[Octafish]

3. Uncle "Bucky" Bush cooks the books. Family trait!

Wonder if these DOJ and SEC lawyers could be labeled as failing to be a sufficiently loyal Bushies?

Bush's Uncle Profits From Options Scheme

By MARCY GORDON, AP Business Writer

Posted on Feb 8, 10:20 PM EST

WASHINGTON (AP) -- One of President Bush's uncles, William H.T. Bush, was among directors of a defense contractor who reaped $6 million from what federal regulators say was an illegal scheme by two executives to manipulate the timing of stock option grants, documents show.

The uncle, known as "Bucky," is the youngest brother of former President George H.W. Bush. William H.T. Bush was an outside, nonexecutive director of Engineered Support Systems Inc., a defense contractor whose profits were bolstered because of the Iraq war.

St. Louis-based ESSI supplied equipment and electronics to the military. It was acquired last year by a defense contractor, DRS Technologies Inc. ESSI has been under investigation by federal prosecutors and the Securities and Exchange Commission concerning the alleged options backdating scheme.

Bush and the others who sat on the ESSI board were not accused of any wrongdoing in the SEC's civil lawsuit Tuesday against the company's former chief financial officer and former controller. Those two were accused of enriching themselves and others with a backdating scheme. Bush made about $450,000 selling some of the stock in 2005.

It was the third case by the agency since last summer involving alleged improper options backdating. More than 100 public companies are under investigation by the SEC and the Justice Department, more than $5 billion in profit has been erased by restatements and 18 chief executives have been swept from their jobs.

CONTINUED...

http://www.cafepharma.com/boards/showthread.php?t=178682

Not Paraguay, China here we come!

Unka Prescott!

[Canuckistanian]

8. I used to work for DRS

Lotta weird things happening there.

[ProSense]

10. Thanks for the information. n/t

[UTUSN]

4. K&R #4, one more to go!!1 n/t

[IChing]

5. done

The military industrial complex is what drives wars.

[ComerPerro]

6. whenever a crime is committed, a Bush crony runs away with the cash

[EVDebs]

7. Looks like Goodling and Sampson missed a US Attorney !! nt

[Erika]

9. Evidently it runs in the family

The Bush people despise the working class. They've never had one good word to say about American workers.

[Octafish]

11. Why work when you can steal?

It's easier.

[happydreams]

12. K&R. This is another one for the files on the "Family that Preys..

together". If history is ever written accurately this crime family will beat the Morgans and Duponts for on the sleaze factor

[Lisa]

13. the guy who gave Bush his "bass buggy"?

The one the artificial president takes out on his artificial pond.

The view looks like a national park, and Bush, the grounds keeper in chief, leaves no detail unsmoothed. He tells of how irked he was by a dead tree's breaking the water's surface, how he took off in his bass-fishing boat, a gift from his uncle William T. Bush, wielding a chainsaw. "I was out there in Uncle Buck's bass-fishing buggy, and the wind was blowing from the north, and I was standing there, nearly got blown over," he remembers. The mission was unsuccessful.
http://www.time.com/time/poy2000/mag/ranch.html

[bobthedrummer]

14. William Henry Trotter Bush-ESSI Board member-just like a Nazi supporter or 2

More on Engineered Support Systems, Inc.

PublicIntegrity.org 1998-2003 profile
http://www.publicintegrity.org/pns/db.aspx?act=cinfo&coid=122604846

Demopedia 2005 entry (w. link to William Henry Trotter Bush)---whoa, this is gone since I googled it less than 15 minutes ago-the address is correct--maybe it's information warfare
http://demopedia.democraticunderground.com/index.php/Engineered_Support_Systems_Inc.

2006 ESSI PAC profile from OpenSecrets.org
http://opensecrets.org/pacs/lookup2.asp?strID=C00350702&cycle=2006

on edit: triple checked the Demopedia link-it works at google, but not here...