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Sunday, February 25, 2024

Bush’s uncle got rich in defense contractor scam

By TIM MCLAUGHLIN President George W. Bush's uncle, William H.T. "Bucky" Bush, was part of a group of outside directors at a defense contractor who realized about $6 million in unauthorized pay from an options backdating scheme, according to U.S. securities investigators. Bush and other non-employee directors who served on the board of Engineered Support Systems Inc., now owned by DRS Technologies Inc., are not accused of any wrongdoing in a civil complaint filed on Tuesday by the U.S. Securities and Exchange Commission.


President George W. Bush’s uncle, William H.T. “Bucky” Bush, was part of a group of outside directors at a defense contractor who realized about $6 million in unauthorized pay from an options backdating scheme, according to U.S. securities investigators.

Bush and other non-employee directors who served on the board of Engineered Support Systems Inc., now owned by DRS Technologies Inc., are not accused of any wrongdoing in a civil complaint filed on Tuesday by the U.S. Securities and Exchange Commission.

The SEC complaint, however, says the non-employee directors benefited from stock options not approved by shareholders.

“As a result, the company provided significant additional compensation to its outside directors beyond what shareholders had approved,” the SEC complaint said. “These same directors later realized approximately $6 million from the exercise of their addtional stock options.”

The complaint did not break out how much Bush and the other outside directors received from a total of 132,000 shares of unauthorized shares.

Bush, whose brother is former President George H.W. Bush, was unavailable for comment. He served on St. Louis-based ESSI’s board from 2000 until the St. Louis defense contractor was acquired last year for nearly $2 billion by DRS, which sells engineering services to the U.S. military.

Bush served on ESSI’s audit committee and received $2,500 a month in consulting fees, an arrangement that later was ended for him and other outside directors. Bush also received a fixed amount of ESSI shares each year for his work on the board.

Before the DRS deal was approved in January 2006, Bush held ESSI shares worth $3.8 million, SEC filings show.

Between 1995 and early 2005, ESSI’s stock climbed nearly 900 percent as the company sold cargo loaders, generators and trailers to the Pentagon. ESSI’s board was politically connected and included several retired generals.

The SEC on Tuesday accused ESSI’s former chief financial officer, Gary C. Gerhardt, and former controller, Steven J. Landmann, of orchestrating a backdating scheme that spanned six years. In all, executives and directors netted $20 million in unauthorized pay, according to the complaint filed in U.S. District Court in St. Louis.

Outside directors received backdated options issued in 1996, 1998, 1999 and 2001, the SEC complaint alleges.

Landmann has agreed to give back about $519,000 in option-related compensation while paying $367,585 in penalties and interest. He did not admit or deny the SEC allegations, and will be permanently barred from serving as an officer of publicly-traded company.

Records unsealed in federal court in St. Louis late last year show that the SEC is investigating Michael F. Shanahan Sr., who co-founded ESSI; his son, who served on the board’s compensation committee; and Shanahan Sr.’s son-in-law, David Mattern, who was general counsel.

The SEC wants the Shanahans and Mattern to produce e-mails, meeting notes, telephone logs and board meeting minutes related to the pricing of Engineered Support stock options, court papers show.

The SEC’s complaint against Gerhardt said nearly half of the unauthorized and undisclosed gains from options backdating, or about $8.6 million, went to Shanahan Sr. He has not been charged by the SEC.

Court records also show there is an ongoing criminal investigation that mirrors, in part, the SEC’s probe.

Copyright © 2007 Reuters Limited

16 thoughts on “Bush’s uncle got rich in defense contractor scam”

  1. As usually Ray, you are brilliant. The book, “Angels Don’t Play This HARRP”, 1995, is excellent reading for those who don’t know what Ray is talking about.

    Stock up, folks,



  2. Sorry to disagree Hank, but you are mistaken about the ability to pressure the media into investigating and exposing the crime syndicate of Bush and the rest of the cabal. You see there happens to be total control of what is reported and how it is reported in every major media venue there is. When the laws that use to prohibit monopolies by corporations were abolished, is when corporatism became the controllers. All major news services, movie moguls, magazines, and even education book publishers are owned by a very few people. Main stream news reporters know that if they were to somehow sneak a story past thier editor that showed any hint of the truth about the takeover of america, they or thier families would suffer dearly. Fear is the tool used by these criminals and they are infested throughout all the factions that link information to the people. That is the main factor of why 911 has not been investigated and analyzed by anyone but the criminals assembled and called a commission. The report they submitted is the most rediculous, assinine collection of unfactual, inconclusive, insulting, incomplete, pack of lies that does not even include a reason that WTC #7 collapsed at 5;30 PM in a perfect display of controlled demolition on 9/11/2001. The control of this conspiracy that we are all witness to, is mind boggling. The day is near that the truth will come out, and let me warn you, be prepared for the shock of your life. The cover up that is going on is immense and it involves way more than just the 911 issue. It is much deeper and involves our governments knowledge and involvement with the UFO and ET phenomenon. To give you a hint, here’s a bit of fact to chew on. The funding of black ops operations ( secret projects ) is ten or more times the amount of money as the department of defence gets. What do you suppose that trillions of dollars has been used for? Space Wars is is one generalization. These black ops groups do not report to anyone, not even the president or the pentagon. There is technology that exists today that could replace the burning of fossil fuels and power the homes of all americans at no cost. Only the cost of the device, the energy comes from the ether. Tesla discovered the existence of this energy back in the early 1900’s and a form of the theory is now in use in Alaska with the HAARP program. Star Wars project enacted by Reagan was the start. The people of this country have no clue to what they are doing to the climate with all the weather modification experiments going on by several groups. In Alaska there is a facility where hundreds of high frequency radio antennae are grouped on tens of acres that can be focused to send a concentrated beam of energy which can raise a large chunk of the ionosphere up 80 miles into space. They can bounce this beam off the ionosphere and target anyplace on the planet. I am not pulling your leg. We commoners are never informed of these experiments and highly developed technologies. We are simply workers who pay taxes that pay for all this stuff. The earth has much oil. Untill its all pumped out and sold, the new technology that would save the earth, end pollution, advance mankind, will not be given. I know, it all sounds like fairy tales but I assure you, its for real. If americans and the rest of the worlds people really knew what was going on and knew just how much we are being lied to and screwed over by this controlling secret cabal of elite and evil faction, there would be a revolution that would be the mother of all revolutions. But these evil ones are very intelligent and very patient. This is how they have infiltrated all governments with persons in positions of power. Gained control of all mass media. Control the worlds banking cartels. When one is baffled and confused why things in the world are so screwed up, nothing makes sense, genocide is dailey somewhere in the world, nobody is doing anything positive to fix all this ills, graft and corruption is the normal, just realize that it is not coincedental, it is all by design. The plan in a nutshell is global economy, global government, global police state with microchipped (RF implant ) workers. Also referred to as the new world order. This world we have today is for the most part actually an illusion created by powerful evil group of controllers. Nothing happens by chance in world events. The next few years will reveal some astounding things and some terrible things. A war between good and evil is destined to be. All I can say is the best and possibly the only protection is unity and total refusal to accept the lie that is the new world order that Bush sr mentioned in 1991. People HAVE to WAKE UP and understand that this is not a joke, this is real. People must stop being mind controlled by that television set and that copy of the washington times. Don’t believe the propaganda. Use your friggin minds and question this BS that is against everything this nation once was. If unity under the bond of honest good will is not achieved soon, we as a free country are finished. Not maybe, not later, but for sure and soon. If you think I’m nuts, just do some honest research someplace besides the controlled media or official government pamphlets and you will see what I’m trying to tell you. To start, ask yourselves why this government has classified all documents even back two or three administrations. Why is secrecy and spying on citizens so important. Terrorism is a front to give reason for these loss of freedoms and invasion of privacy, its obvious. It is not just GW. He is but a puppet and is perfect in his role. His ignorance is the excuse for his actions. Just like norads excuse of being confused because of drills, so the planes flew around for an hour when fighters were stationed nine miles away at edwards afb. Wake UP AMERICA. Save Yourselves.

  3. O.K. so none of them goes to jail on this one…we know that but can we at least pressure the media to illuminate this filthy underbelly of the Bush regime. When Americans are shown the truth, they can respond. There is a saying in the South “Don’t piss down my back and call it rain.”Folks…wake up and smell the coffee…it hasn’t been raining!

  4. Wescott Bush with Rockfeller made tons with Hilter in Germany. When Bush was campaining in Columbus, Ohio. First time around they asked if he was going to visit his grandfathers’ grave (which is unmaintained), he said no. I think he didn’t want the ghost of his grandfather to surface and show what this family is made of, their DNA, and how they have always repressed others.

    Remember it’s in their genes, to steal, murder…and get away with it.

    Ron Kay…I told you in another post. He cashed in his put options and owns a ranch in Texas…try an prove me wrong!

    These despicable people are all in it together. The Bin Laden family and the Bushs’ have been in business together for along time. What makes you think that’s changed?

    You know it isn’t funny anymore…’s just truly sick.

  5. Whoever thought that there would someday be one president who surpasses the sheer incompetence of Harding and Hoover, the nepotism of Grant, the warmongering of Lyndon Johnson, and Nixon’s contempt for the Constitution and the rule of law?

  6. Ahh greed – isn’t it wonderful? Billions of dollars are stolen by amoral corporate officers as thousands of American lives are sacrificed. And imagine, the company had retired generals and the relatives of politicians as officers – gosh – I’m shocked.

    And the brother of George H. W. “Read my lips” Bush – another fraud – who somehow became President even though he’s not worth his weight in flatus.

    The justice department should be on these folks like a wet fart on satin undies.

    The Bush clan seems to rely on God a lot – I mean the compassionate conservative bullshit – the “born again” claims of GW – well – if there is a God, the Bush family better hope he’s got a good sense of humor ….

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