Dead Executive Was Granted Cablevision Stock Options

In one of the more unusual twists in the current wave of stock options irregularities, cable TV operator Cablevision Systems Corp. (CVC) said it granted options to an executive after he died.

Cablevision restated its financial results Thursday because of the improper stock options practices and also said it had received a subpoena from the U.S. Attorney's Office for the Eastern District of New York, which is investigating the company.

In a regulatory filing made Thursday, Cablevision disclosed that it had granted options to an executive after his death, but improperly recorded the date of the grant to an earlier time when the executive was still alive.

Cablevision didn't identify the executive but The Wall Street Journal, citing people familiar with the situation, said the options were given to Vice Chairman Marc Lustgarten, who died in 1999. The Journal said Lustgarten's estate was entitled to exercise the options upon his death.

A Cablevision spokesman didn't immediately return a call for comment.