An ex-Monster Worldwide employee accused of fraud is getting his day in court.
James J. Treacy, Monster’s former president and chief operating officer, is standing trial for making $24 million in an alleged attempt to improperly backdate millions of dollars in stock-options awards.
Treacy, 50, of Glen Rock, NJ, was arrested in April 2008 and charged with conspiracy to commit securities fraud, filing false reports with the SEC, making false statements to auditors, and falsifying books and records. He is the third former executive charged with criminal backdating-related violations at Monster.
According to the Wall Street Journal, prosecutors allege that Treacy did not act alone. Andrew J. McKelvey, Monster’s founder and former chief executive and others “gamed the system” in order to make millions off stock options from the company.
WSJ.com said that in January 2008 McKelvey admitted in federal court that he routinely backdated employee stock options while running the company, but under an unusual “deferred prosecution” agreement, avoided serving any time in prison. Prosecutors said McKelvey has a terminal medical condition.
Treacy resigned from Monster in 2002, and Mr. McKelvey resigned in October 2006.
Popularity: unranked [?]
April 22nd, 2009 at 12:17 pm
Late breaking (um, 5 month old) news – Andy McKelvey passed away in December.
You might want to amend the article to include this bit of trivia.