Close exec pleads guilty to stock fraud

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Culver City (CA) – Former exec Myron F. Olesnyckyj has pleaded guilty to stock options fraud. The former senior vice president of the well-known online employment website is now facing up to 25 years in prison and $5.2 million in fines. Prosecutors charged that Olesnyckyj backdated options so that he could exercise them at the most profitable stock price. 

Fortunately for Olesnyckyj, he probably won’t be hit with the full $5.2 million dollar fine because of his plea dead with prosecutors. Yesterday he agreed to pay $381,000 in restitution.

Stock options allow people to buy or sell shares at a set price in the future. Corporate executives often receive options as part of a compensation package and those options could be a huge bonus, if the company and stock prices do well. The Security and Exchange Commission requires companies to report how many options are given to particular executives and forbids executives from misrepresenting or backdating options.