Legal News

Broadcom Co-Founder Pleads Guilty in Backdating Case

By Dan Slater

Unlike the case against Broadcom co-founder Henry T. Nicholas, the one filed Monday against his former partner, Henry Samueli, is decidedly less sexy. Samueli, a Broadcom co-founder and former chief technology officer, pleaded guilty yesterday to making a false statement to the SEC in connection with the its investigation of alleged stock-options backdating at the Broadcom.

Henry Samueli in 2005. Photo: Orange County Register

Here’s the WSJ story, here’s the information and here’s the plea agreement.

California prosecutors recommended that Samueli, 53, who with his wife owns the NHL’s Anaheim Ducks, serve five years of probation and pay more than $12 million in penalties, according to the plea. District Judge Cormac J. Carney — a former All Pac 10 wide receiver at UCLA — scheduled sentencing for Aug. 18.

Earlier this year the SEC filed civil charges related to backdating against Samueli and three other current or former Broadcom execs. Prosecutors later unsealed backdating-related criminal charges against the former CEO, Henry Nicholas III, and former CFO, William Ruehle, each of whom pleaded not guilty to the charges. Samueli was referred to as an unindicted co-conspirator in that case.

According to Samueli’s plea agreement in the SEC case, during a deposition taken by the SEC last year, Samueli falsely stated that he wasn’t involved in the granting of backdated options for the company’s top execs. However, in at least two instances Samueli allegedly played a role in granting backdated options.

Gordon Greenberg, a lawyer for Samueli, said in a statement: “Both parties have agreed this is a fair resolution of this issue.”

Full post as published by Law Blog - WSJ.com on June 24, 2008 (boomark / email).