Appeals Court Upholds Conviction of Former Monster Exec

A federal appeals court Wednesday upheld the conviction of former Monster president and COO James Treacy, but ordered the trial court to recalculate part of the $6.3 million it ordered him to pay in forfeitures.

Treacy was convicted in May 2009 of stock options fraud in connection with the granting of backdated Monster stock options. He was sentenced in Sept. 2009 to two years in prison, fined $6.3 million and the same in forfeitures. (The amount was determined to be how much Treacy profited by the backdating of stock options he was granted.)

He appealed his conviction and challenged the trial court’s calculation of the restitution. The appeals court ruled against him on all but one issue: how the judge figured the forfeiture amount for 75,000 options with a grant date in December 1998. The revisions ordered by the appeals court will result in a somewhat smaller total amount of forfeitures.

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Treacy is the only former Monster executive to receive prison time in connection with a stock options backdating scheme that netted the recipients — including Treacy — millions. Andrew McKelvey, who founded TMP Worldwide, which owned Monster, and was the company’s CEO and chairman, was accused of stock fraud, but because of his terminal pancreatic cancer, was allowed to defer his prosecution after he admitted his guilt in court. McKelvey died in November 2008.

John Zappe is the editor of TLNT.com and a contributing editor of ERE.net. John was a newspaper reporter and editor until his geek gene lead him to launch his first website in 1994. He developed and managed online newspaper employment sites and sold advertising services to recruiters and employers. Before joining ERE Media in 2006, John was a senior consultant and analyst with Advanced Interactive Media and previously was Vice President of Digital Media for the Los Angeles Newspaper Group.

Besides writing for ERE, John consults with staffing firms and employment agencies, providing content and managing their social media programs. He also works with organizations and businesses to assist with audience development and marketing. In his spare time  he can be found hiking in the California mountains or competing in canine agility and obedience competitions.

You can contact him here.

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