Broadcom Blame Spreads
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