Prosecutors unsealed indictments against former Broadcom CEO Henry T. Nicholas III and CFO William J. Ruehle on charges of stock options backdating, along with allegations that Nicholas spiked the drinks of technology executives with ecstasy and organized a lavish drug party at a warehouse.
Nicholas allegedly hid the stock options backdating by signing false documents. The Securities and Exchange Commission filed charges against Nicholas, Ruehle and two other Broadcom executives last month (see SEC Charges Former Broadcom Officials). The company agreed to pay a $12 million settlement with the SEC in April to settle the backdating charges (see Broadcom to Pay $12M Settlement to SEC).
The indictments also accused Nicholas of owning properties that were used to distribute drugs and of hiring escorts and supplying them with drugs. He also was accused of threatening and bribing people to conceal his conduct, and of smoking so much marijuana on a private airplane that the pilot had to wear an oxygen mask.
"Dr. Nicholas will contest these charges vigorously," said Nicholas's lawyer, Brendan V. Sullivan, in a statement quoted by The New York Times. "He is confident that he will be vindicated."
Register or login for access to this item and much more
All Accounting Today content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access