Monster Worldwide will pay 2.5 million fine

Monster Worldwide Inc, a job recruiting company, whose former COO and president was convicted last week for a stock options backdating scheme, will have to pay a $2.5 million fine to the U.S. Securities and Exchange Commission. The SEC said in a statement it charged the company for a scheme to secretly backdate stock options granted to thousands of company officers, directors and employees. James Clarkson, acting regional director of the SEC's New York Regional Office, said: "Monster misled investors by failing to report hundreds of millions of dollars of expenses. Backdating stock options made the company look like it had more money than it really did." The company did not admit or deny the SEC's allegations but the fine would be paid nevertheless. Monster Worldwide company was required to restate its financial results for 1997 to 2005 in a cumulative pretax amount of about $339.5 million and to record additional non-cash charges for option related compensation expenses. James Treacy, the former chief operating officer and president of Monster Worldwide Inc, was convicted by a jury in Manhattan federal court on May 12 of securities fraud and conspiracy in backdating option grants to employees.