Appeal against Samueli dropped

Daily Pilot

The U.S. Attorney's office has dropped its appeal against Newport Beach billionaire Henry Samueli, who had a criminal case against him and other Broadcom executives dismissed by a federal judge last year.

Samueli, co-founder of Broadcom and co-owner of the NHL's Anaheim Ducks, was charged with lying to the U.S. Securities and Exchange Commission about stock option backdating for company employees. Company co-founder Henry T. Nicholas III and Chief Financial Officer William Ruehle also faced federal charges.

Samueli pleaded guilty and was hoping to avoid prison time. As he awaited sentencing, the U.S. Attorney's Office case against Ruehle went to trial. During that trial, Samueli testified about his participation in the backdating.

The men were accused of giving their employees stock options and activating them at a backdated, lower price so they could cash them in for more money. The practice is only illegal if you don't reveal it to the government and stockholders.

During Ruehle's trial, U.S. District Judge Cormac J. Carney dismissed the charges against Samueli, citing prosecutorial misconduct. The charges against all Broadcom executives were eventually dismissed.

The government will not appeal the dismissals of any of them, officials said.

— Joseph Serna

Copyright © 2019, Daily Pilot
EDITION: California | U.S. & World