Archive for Thursday, May 15, 2008
SEC accuses Broadcom co-founders of fraud
The agency says in a civil complaint that Henry Nicholas and Henry Samueli backdated stock options.
The Securities and Exchange Commission today filed civil fraud complaint against Broadcom Corp. co-founders Henry T. Nicholas and Henry Samueli, owner of the NHL Ducks, in an alleged scheme to systematically backdate stock options.
The complaint, filed in U.S. District Court in Santa Ana, also names former Chief Financial Officer William J. Ruehle and General Counsel David Dull.
None of the current and former officials at the Irvine-based chip maker could be reached for comment immediately.
The complaint comes on the heels of an SEC lawsuit filed against Broadcom on April 22 alleging that Nicholas, Samueli and other senior Broadcom executives “orchestrated and carried out” a long-running scheme to backdate stock options.
The illegal backdating occurred from June 1998 to May 2003 and involved as many as 88 options grants during a time of “tremendous growth” for the company, the SEC alleged in the earlier complaint. Broadcom agreed to pay $12 million to settle the lawsuit.
Broadcom makes computer chips used in iPods, mobile phone headsets and Nintendo’s Wii game console, among other products. It had relied heavily on stock options to recruit and retain employees, according to the SEC.
An option is a right to buy shares at a set price in the future, typically the closing price of the company’s stock on the date the option was granted. Broadcom, like many other technology companies, backdated grants to take advantage of lower closing prices, with option holders’ gains coming at the expense of shareholders, the SEC said.
Save/Share:
- Sprinkles is frosted over cupcake newcomer Sprinkled Pink
- Palin's secession flirtation
- With homeowner in doghouse, bobcats move in
- The imperfect hero
- Russian nationalist advocates Eurasian alliance against the U.S.
- Care providers in crisis as budget impasse drags on
- Only 48% of California high schools meet federal standards, even with easier measure
- For L.A. man, 93, life is a walk in the park
- Republican vice presidential nominee Palin changes colleges 6 times in 6 years
- Bobcats at home
- For L.A. man, 93, life is a walk in the park
- Tropical Storm Hanna set to soak East Coast
- USC will watch Ohio State-Ohio game for quarterback clues
- 7 Inglewood officers are placed on leave
- John McCain and Barack Obama focus on job losses, economy
- Anaheim man sentenced to life in 1985 murder
- LPGA suspends rule requiring players to speak English
- West Nile virus kills San Bernardino County man
- Man in wheelchair killed by big-rig truck in downtown L.A.
- Suspicious package shuts down 101 Freeway
