15 February 2007
Monster exec to face fraud charges
A former senior vice president of the company behind the Monster job search website is expected to plead guilty to fraud charges at a Manhattan federal court today, reports suggest.
According to the Wall Street Journal, former Monster Worldwide executive Myron Olesnyckyj is expected to make a deal with prosecutors over charges relating to the back-dating of stock options.
The financial paper said that Mr Olesnyckyj is also expected to describe the role of Monster founder Andrew McKelvey in the illegal activities, which involved misquoting the value of stock options grants.
The company is also accused of overstating its earnings by more than $250 million (£128 million) between 1997 and 2003.
Although so-called 'backdating' itself is not illegal, the practice must be properly accounted for and disclosed to investors.
The scandal over the accounting of past options grants has become more widespread in recent years, with dozens of company executives in the US being forced from their jobs as a result of internal investigations and probes by market regulators.