U.S. News

CNBC Exclusive: Ex-Monster Executive Expected to Plead Guilty


A former executive with Monster Worldwide is expected to plead guilty Thursday over backdating of options, according to WNBC's Jonathan Dienst, reporting for CNBC.

Several sources said Monster.com's former general counsel, Myron Olesnyckyj, is expected to appear in federal court in Manhattan court on federal securities fraud charges. Olesnyckyj is expected to plead guilty.

In December, Monster.com, the job website, admitted to intentionally backdating options. The expected criminal charges are the first to be filed against any of Monster's former executives. Also under scrutiny, Monster Worldwide's former CEO Andrew McKelvey, who stepped down in October, Dienst said.

Attorneys for the former executives declined to comment, as did spokesmen for the U.S. attorney's office, postal inspectors and the SEC. A Monster spokeswoman says the company is cooperating.

Monster Worldwide, which runs a huge website for jobseekers, has reported substantial pricing problems with past options grants dating from 1997 through 2005. Backdating of options can be illegal if the changing of the options date is not reported to shareholders. More than 170 companies are now under scrutiny for their backdating of stock options.