Founder of Monster Reaches Deal With Prosecutors

NEW YORK -- Monster Worldwide Inc.'s founder, Andrew McKelvey, and federal prosecutors have reached a "deferred prosecution" agreement, settling a long investigation into his alleged role in a backdating scheme at the company, The Wall Street Journal reported Wednesday citing a person familiar with the deal.

Under the agreement with prosecutors from the Southern District of New York, McKelvey will acknowledge wrongdoing, but won't be forced to enter a guilty plea and won't face jail time, this person told the paper.

The deal's leniency reflects McKelvey's poor health. He has pancreatic cancer and his prognosis is poor; it is unclear whether he would be alive to face trial, the paper reported.

McKelvey, the company's former CEO, is also expected to reach a settlement with the Securities and Exchange Commission in which he will disgorge around $250,000, the person familiar with the matter told the paper.

In a related deal, McKelvey will pay back millions of dollars to the company and will convert his super-voting B shares into A shares, this person told the paper. McKelvey owns all 4.762 million shares of Monster's Class B stock, according to the company's most recent proxy.

-- NYSSCPA.org News Staff

Posted on 1/23/08