In a plea agreement reached on Monday, former Engineered Support Systems Inc. co-founder Michael Shanahan Sr. also agreed to repay $7.9 million.

In exchange for the guilty plea on one count of falsifying the records of a publicly traded company, the government dropped 11 other charges against Shanahan. The government also agreed to drop charges against his son, Michael Shanahan Jr.

The 68-year-old Shanahan was the chief executive of Engineered Support Systems, a company that supplied military support and equipment. He led a group of St. Louis businessmen that bought the Blues from Harry Ornest in 1986. The group sold the NHL team in 1999.

A federal grand jury last July charged the Shanahans and Gerhardt with securities fraud. Federal prosecutors accused the men of backdating stock options between 1996 and 2002 in a scheme they claim enriched executives and board members by nearly $20 million.

Prosecutors said the executives were able to retroactively pick dates for stock options that coincided with low points in the company's stock price, allowing them to make greater profits when they exercised the options, according to the indictment.

A sentencing date has not been set.

Under federal guidelines, Shanahan could face up to 21 months in prison, though he could get less time due to "substantial assistance" in the case, according to the plea agreement.

COYOTES RE-SIGN CARCILLO: Daniel Carcillo, who led the NHL in penalty minutes as a rookie last season, was re-signed to a two-year contract Tuesday by the Phoenix Coyotes.

Carcillo, a 23-year-old left winger, had 13 goals, 11 assists and 324 penalty minutes in 57 games.

He became the first rookie in NHL history to have more than 300 penalty minutes and 15 points in one season.