Comms chips

Broadcom Blame Spreads

8:50 AM -- Oh Henry! The Broadcom stock-options scandal appears to have spread to founders Henry Nicholas and Henry Samueli.

The AP reported late yesterday that federal prosecutors have labeled both men unindicted potential co-conspirators in the backdating process. Their names came up in a plea agreement with Nancy Tullos, a former Broadcom executive.

Prosecutors appear to have a paper trail in which an engineer demands an altered hiring date, supposedly approved by Nicholas, in order to get a better options price.

A Broadcom audit had already pegged Nicholas for having a role in backdating, although he didn't benfit from the practice. Samueli had escaped any share of the blame.

Broadcom's case is drawing a lot of attention because of its size. At $2.2 billion, Broadcom recorded easily the biggest earnings restatement due to options backdating. (See Broadcom's $2.2B Confession.)

— Craig Matsumoto, West Coast Editor, Light Reading

Pete Baldwin 12/5/2012 | 3:46:14 PM
re: Broadcom Blame Spreads Nancy Tullos has agreed to pay $100,000 in a settlement with the SEC. (Actually it's $1.4 million, but they're counting her canceled Broadcom options towards most of that.)


official SEC version:
Pete Baldwin 12/5/2012 | 3:42:45 PM
re: Broadcom Blame Spreads Broadcom's settled with the SEC for $12M, and Henry Nicholas is in rehab:

bollocks187 12/5/2012 | 3:42:41 PM
re: Broadcom Blame Spreads Its just goeas to show you that the people at the top are more corrupt than the people at the bottom.
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