Former Monster CEO Andrew McKelvey, who was forced out of the company in 2006 amid an options back-dating scandal, has settled with both the SEC and his former employer. He’ll pay the Feds $276,000 in fines and has agreed not to work as on officer or director of a public company. And he’ll pay Monster $8 million, and reduce his voting stake in the company. AP:
The SEC said in its settlement that McKelvey understood that the backdating of the options without recognising an appropriate compensation expense went against accounting rules and also wasn’t properly disclosed in Monster’s regulatory filings.
While McKelvey himself didn’t receive backdated options, the SEC said he benefited from the scheme by giving the options to four people that he employed personally, including three pilots and a mechanic.
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