Business

Judge gives ex-Monster exec 2 years in prison

Posted September 02, 2009 11:00 pm

Associated Press

NEW YORK -- The former president and chief operating officer of the online job services company Monster Worldwide has been sentenced in New York to two years in prison for stock options fraud.

A Manhattan federal judge on Wednesday also ordered James Treacy to forfeit $6.3 million and pay restitution of $6.3 million to the victims.

Treacy was convicted in May of wrongfully backdating millions of dollars' worth of employee stock option grants. Options give employees the right to buy shares of stock at predetermined prices.

Prosecutors say the backdated option grants caused the parent company of Monster.com to understate expenses by $339 million from 1997 to 2005. They say Treacy received more than a million options and gained more than $23 million.

The Glen Rock, N.J., resident had denied the charges. His lawyer hasn't commented on the sentencing.

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