Will “The Monster Mash” ever end?

Posted by Jim Stroud

April 23, 2008

I know Monster has its troubles, but their situation seems to get more and more interesting as the days go by. Case in point, check out this article from Reuters. It discusses a criminal probe of Monster where they have (allegedly) backdated options. (Owch!)

Here is a quote…

NEW YORK (Reuters) - U.S. prosecutors are continuing their criminal investigation into the manipulation of stock options at Monster Worldwide Inc, according to a filing in U.S. District Court in Manhattan.

U.S. Attorney for the Southern District of New York, Michael Garcia, is seeking to have depositions by six former top executives at the global online employment service delayed up to 60 days so that his staff can complete their criminal case.

The government is seeking to intervene in a civil suit against the company and its top executives that charges they “engaged in a long-running scheme to improperly backdate and account for numerous stock option grants at Monster Worldwide Inc.”

Monster’s former general counsel, Myron Olesnyckyj, pleaded guilty in March 2007 to charges of conspiracy and securities fraud and is expected, according to the filing, to testify against others at any upcoming trials.

Andrew McKelvey, Monster’s former chief executive officer, pleaded guilty in January this year to the scheme, which resulted in the company falsely reporting its net income.

The court filing gives as one example, Monster’s annual 10-K filing for 2001, which reported the company’s “net income was $69,020,000, but this was, in fact, an overstatement of more than 1,900 percent…”

1900%!!! Wow.

If this were a sitcom, it would sound something like this.

The Feds would say, “Luceee, you have some ’splainin’ to do!”

Monster’s reply, “Waaaaaahhhhh!!!!”

(Click here for the rest of the story)