The Securities and Exchange Commission today announced a settlement with Broadcom on the chip company’s stock-option backdating case. The chip maker was officially charged with falsifying its net income for a period of five years, from 1998 to 2003. Without admitting or denying the charges, Broadcom settled the case with the SEC and agreed to pay a penalty of $12 million.
One of biggest backdating cases around is winding down. The company previously took a non-cash charge against earnings of more than $2 billion (yes, that’s “B,” as in billions) to reflect how much profit should have been charged to reflect the value of stock options that were given out like candy by Henry Samueli, Broadcom’s chairman and CTO, and Henry Nicholas, the company’s co-founder and former CEO.
Still to be seen is whether Samueli, Nicholas, and SVP David Dull (the chip maker’s general counsel) will each face civil and/or criminal charges. Samueli and Dull are on official notice that the SEC may bring charges against them. Nancy Tullos, Broadcom’s former HR VP, is cooperating with federal prosecutors after making a plea deal; she’s also settled with the SEC.
The Los Angeles Times today reported that Nicholas recently checked into The Betty Ford Center. A sterner fate may await him once he completes his rehab.
Comments
Leave a Comment