'Deathbed' Admission From Monster.com Founder (Back-Dated Stock Options, Falsified SEC Filings)

Source: ABC News Blotter


McKelvey Admitted He Back-Dated Stock Options, Falsified SEC Filings

As part of an unusual deal with the government that will spare him being convicted of a crime or sent to prison, the multimillionaire founder of Monster.com, Andrew McKelvey, reported to be terminally ill with cancer, admitted he back-dated stock options for company employees and signed and certified falsified public filings with the SEC.

As part of an agreement, the U.S. Attorney's Office will defer prosecution of McKelvey, meaning the charges will be dismissed after 12 months, pending his good behavior and compliance with the agreement. In addition, McKelvey has agreed to pay Monster.com $8 million plus convert his 4.7 million shares from super voting rights to common rights. A super voting right counts 10 times more than a common one.

Sources told ABC News McKelvey's terminal illness played a part in determining the agreement.

In addition to Monster.com, a hugely popular job search site, at least 200 companies have come under investigation for the practice in which the issue date of stock options is manipulated to maximize profits for executives.

Read more: http://abcnews.go.com/Blotter/story?id=4156661&page=1

of compassion how often? Disgusting...:puke:

A deathbed confession is one motivated by guilt. This one is motivated by this criminal not wanting to die in prison.

Where he should.

this guy just didn't want to meet a bunch of guys who wanted to make him.

But I believe, he'll get his. And may the pain move him to the truthO8) O8)

or at least give the rest of us some satisfaction:evilgrin: :evilgrin:

either way he gets :nopity: :nopity: from me.

But may God have mercy on the :evilfrown: bastard.

before they complete their sentence.
What was Susan McDougal's husbands name? Just came to mind.
Lots of cases to site, I'm certain.

Would he have come clean if he hadn't been caught? Unlikely.

financially right his wrongs, using the millions he obtained illegally in the first place !!
I have a friend who served a year in prison for $2200 in hot checks she wrote during the brief time of her nervous breakdown, following a succession of personal tragedies including her own suicide attempts.
The prosecutor took none of her mental instability nor events that caused it into consideration. His claim was that her emotional illness could be treated by prison doctors.
I am so sick of this disparity in our legal system.
And then we have the Pres of the USA lying us into a war that has padded the pockets of his supporters, and there again is no accountability for their criminal acts.
Fucked up.

if he was a poor black guy who stole $20.00 to buy medication for his cancer, there would be no compassion for him.
but because he has money, he get to pay his way out of jail. i wonder what his net worth is...just how much is that 8 million going to hurt him?

Sounds like he was just trying to be a nice guy to give employees a gift?

I don't understand all of the rules and regulations associated with the SEC -- is this a "victim-less" crime? And if so, what's with the vitriol in the thread?

Martha Stewart spent some time in the Big House for doing much less.

was sent the river for lying to a federal prosecutor. This was the same charge that got libby 6 months or what ever.

If you have an option which says a stock will increase/decrease by such and such a date, that option has a certain value based on the date the option is issued. If you backdate an option, you can highly inflate the value of that option.

Not victimless. Someone on the other end of that option has to pay out.

It is fraud.

I'm not sure who it is that's paying out, other than whomever the stocks are sold to.

the other end of the option holder appears to be Monster.com who passes the loss to either its customers or to its shareholders.

Every case is different, but there is always an other end to each transaction.

that guy spoke at my college graduation. Inspired everyone to "reach for the stars".

And all this time, he was cheating like a Monster (couldn't help myself).

Figures....

But I think it would cost us far more to put him in prison than accept a plea bargain.

If you are rich but have cancer, you can reveal your life of criminal activity without repercussions.

Number 14,675 why they rich aren't like normal people.

and fwiw, monster.com suxxx--HARD...never so much as got me an interview, and i've been a member since '01

The rich wonder why they are so despised..... yeah, it's just jealousy.