O.C. tech billionaire’s aide makes plea deal
An attorney who oversaw Broadcom Corp. billionaire Henry T. Nicholas III’s private dealings for more than five years pleaded guilty Friday to two misdemeanors and agreed to cooperate with federal prosecutors who have charged Nicholas with fraud and drug violations.
Craig Gunther became chief operating officer of Nicholas’ family office in 2001, when Nicholas, co-founder of the Irvine technology firm, allegedly was manipulating stock options to improperly reward employees. Nicholas also is accused of furnishing drugs to friends and associates.
Nicholas, who left Broadcom in 2003, has pleaded not guilty and is free pending trial.
Gunther faces up to two years in prison, Assistant U.S. Atty. Jeannie Joseph said at a hearing before U.S. District Judge Cormac Carney in Santa Ana. But under sentencing guidelines outlined in the plea agreement, a sentence of a year or even probation appears more likely.
Gunther pleaded guilty to evading a banking law that requires that any cash transactions of $10,000 or more be reported to tax authorities.
Nicholas regularly requested tens of thousands of dollars in cash, prosecutors said. Gunther said he would sign several checks of $9,500 each so couriers who cashed the checks at Northern Trust in Newport Beach would not have to fill out forms reporting the withdrawals.
In a statement from his lawyer, Robert L. Corbin, Gunther said he never realized that the practice was illegal. He said that for security and privacy reasons he had not wanted lower-level employees to handle larger amounts of cash.
--
