Monster boss let off in backdating case
The US government has agreed to defer the prosecution of former Monster chief, in light of his terminal illness
Andrew McKelvey, former
Monster Worldwide chief
executive officer, charged with securities fraud and conspiracy in connection
with the backdating of seven years of employee stock option grants, no longer
faces prosecution because he is terminally ill.
The backdating, according to the indictment resulted in more than $US300m
(?153.4m) of inflated earnings for the recruitment giant through the
understatement of compensation expenses. The government said McKelvey had
accepted responsibility for his participation in the scheme, CFO.com
reports.
In light of McKelvey’s poor health, the government agreed to defer his
prosecution, according to a statement from Michael Garcia, US attorney for the
Southern District of New York. Under the deferral agreement, the charges will be
dismissed after 12 months if McKelvey abides by the terms of the agreement.
In addition to accepting responsibility of his crime, the former Monster boss
agreed to pay $US276,000 to settle civil charges with the Securities and
Exchange Commission in connection with the backdating scandal.
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