Monster Founder Cuts Deal In Backdating Scheme Investigation
Founder of Monster Worldwide Inc., Andrew McKelvey has reached a “deferred prosecution” agreement with federal prosecutors which settles a lengthy investigation into the role McKelvey played in a supposed backdating scheme at the company, reports the Wall Street Journal.
Under this agreement, McKelvey will have to acknowledge wrongdoing, but will not be made to enter a guilty plea and will not face jail time, according to a source familiar with the case.
The leniency is in reflection of McKelvey’s deteriorating health. The man suffers from pancreatic cancer and it would be uncertain if he would even live to see a trial.
McKelvey is the former CEO of the company and is anticipated to reach a settlement with the Securities and Exchange Commission where he will pay out about $250,000, the report continued.
In another deal, McKelvey will pay back millions of dollars to his company and will need to convert his B shares into A shares. McKelvey owns all 4.762 million shares of Monster’s Class B stock, as shown by the firm’s most recent proxy.
The company was getting ready to push legal claims against McKelvey although he did not receive backdated options, said the report.
Monster has made previous claims that previous officials “intentionally” backdated options throughout a six-year period to make them more valuable for the recipients. The past general counsel for the company, Myron Olesnyckyj pled guilty last year to federal criminal charges connected with this case to cooperate against McKelvey and other previous Monster officials.
Reader Comments.
Since when do criminals not face jail time?
He admitted he did something wrong, illegal. He should go to jail.
Does having enough money keep you out of jail?
Does being too old or ill keep you out of jail?
Was Sal just trying to “buy him out” to get his voting stocks for something bigger?
LD you must be a big liberal dummy.
- Law breakers avoid jail all the time with plea arrangements – criminal and civil defendants alike.
- It takes more than an admission to doing something wrong in order to meet the burden to deprive a person of their constitutional liberties and incarcerate them.
- In some instances, money does increase the chance that an individual will avoid a sentence that includes incarceration.
- Age and health are factors that a judge and prosecutor may weigh in consideration of a crime involving a discretionary jail sentence.
I hope you are now illuminated. Now, go ask Sal what he was trying to do to get your final answer.
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