Former Monster CEO Indicted On Securities Charges
New York, NY (AHN) - James J. Treacy, former president and CEO of Monster Worldwide, was convicted on federal security fraud and conspiracy charges related to stock option grant backdating between 1997 and 2003.
In a two-count indictment, the U.S. government alleged Treacy conspired with others inside the company to "systematically" backdate stock options. Do to the actions, Monster paid $300 million for understatements for 1997 and 2005.
The former Monster executive is expected to be arraigned later Wednesday in Manhattan federal court.
Treacy resigned from Monster in 2002 and Monster founder and CEO Andrew McKelvey resigned following a probe into stock option handling.
Prosecutors charge Treacy exercised more than $23 million from 1 million stock options.
If convicted, Treacy could face up to 25 years in prison and a $500,000 fine.
Monster became one of the first companies that fell under the stock option backdating spotlight.