Ex-Monster boss settles backdating case

Andrew J. McKelvey will pay $275,989.72 in and will be barred from serving as an officer or director of a public company.

The Securities and Exchange Commission has settled a stock-option backdating case with Andrew J. McKelvey, the former chief executive of Monster Worldwide Inc.
Under the terms of the settlement, Mr. McKelvey will pay $275,989.72 in disgorgement and prejudgment interest and will be barred from serving as an officer or director of a public company.
The SEC complaint alleged that he and others backdated stock-option grants to coincide with the dates of low closing prices for the company’s common stock.
As a result, Mr. McKelvey caused the company to improperly state in SEC filings that all stock options were granted at the fair market value of the stock on the date of the award.
Additionally, the SEC said he caused the company to file misstated financial statements with the SEC, thus overstating the company’s aggregate pretax operating income by approximately $339.5 million from 1997 through 2005.
While Mr. McKelvey did not receive any backdated options himself, he granted backdated options to four individuals he personally employed: three pilots and a mechanic.
He agreed to the settlement without admitting or denying the allegations in the complaint.