Henry T. Nicholas
III indicted on drug and fraud charges
The
co-founder of Broadcom, Henry T. Nicholas III, was indicted on a
long list of charges, mainly encompassing fraud and drugs
dealings. The indictments, returned by a federal grand jury,
charged Henry T. Nicholas III with a total of 25 counts,
including conspiracy, securities fraud, false certification of
financial reports, filing false statements with the U.S. SEC,
wire fraud and conspiracy to distribute and acquire controlled
substances. Most of the charges stem from a scheme to backdate
options without properly accounting for the move, which forced
Broadcom restate its financial results in January 2007 and
report more than $2 billion in compensation expenses it hadn't
accounted for. And according to the court documents, the drug
charges are based on allegations of Henry T. Nicholas III
"spiking" the drinks of several technology-industry leaders and
customer representatives with ecstasy.
Henry T. Nicholas III was the founder of
the company Broadcom in 1991, making the innards of cable TV
boxes at his Redondo Beach apartment. In January 2003, Nicholas
quit Broadcom, saying he intended to spend more time with his
children and tend to his marriage. Among the many legal troubles
he now faces is a divorce battle with his wife Stacey, with whom
he controls US$1.1 billion in Broadcom shares. He appeared on
the pages of OGPaper back in July of 2007, when he was sued by a
construction company and some spicy details were made public,
click
here to read the article.
Published on
06/05/2008
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