Broadcom backdating options plea
It is legal when properly accounted for, but if companies fail to properly disclose the move, profits can be overstated and taxes underpaid.The probe into Broadcom's options backdating led the Irvine, California-based telecommunications chipmaker to write down .2 billion last year, the largest restatement of its kind.Under a plea agreement with the government, he would be sentenced to five years probation plus .2 million in penalties and fines. Samueli was named by his initials as an unindicted co-conspirator in that indictment.On Monday, during a hearing at which Samueli entered his guilty plea, Carney said, “I don’t think I have to be a rocket scientist to think Dr. Carney suggested that if Samueli attempts to assert his Fifth Amendment right against self-incrimination during trial testimony, Carney might rule that Samueli had waived that right because of his guilty plea.Prosecutions against executives accused of fraud in connection with backdating stock options have been plagued by prosecutorial misconduct.In August, the Ninth Circuit reversed the conviction of Gregory Reyes, former CEO of Brocade Communication Systems, due to prosecutorial misconduct.Samueli, who served as Broadcom's chairman and chief technical officer, admitted to falsely telling U. Securities and Exchange Commission investigators in May 2007 he was not involved with options granting practices at the Irvine, California-based chipmaker, court documents showed. Samueli is leaving his guilty plea in place as he pursues the appeal, his attorney, Gordon Greenberg, said Tuesday during a hearing in U. Nicholas also faces drug-related charges, including accusations that he slipped ecstasy into the drinks of business associates.SANTA ANA, California Broadcom co-founder Henry Samueli is gambling that an appeals court will accept a plea deal that would spare him prison time in one of the largest U. Nicholas and Ruehle have pleaded not guilty and are free on bail. Backdating involves retroactively setting a stock option's exercise price to a low point in the stock's value, boosting the profits that are attained when the shares are sold.
Reyes’ defense was that, although he had signed off on backdated options, he had relied on Brocade’s finance department to properly account for the backdated options in the corporate books and was not responsible for false records.
At Samueli's sentencing, set for August 18, Carney is to decide whether he approves the plea agreement Samueli reached with prosecutors.
It calls for five years of probation, payment of million to the US Treasury and a fine of 0,000.
Law360, New York (December 15, 2009, PM EST) -- Chiding the U. government for intimidating witnesses and creating a “mockery” of the criminal process, a federal judge has thrown out criminal charges against former executives at semiconductor company Broadcom Corp., bringing closure to a highly public and scandalous case accusing the men of backdating stock options. District Court for the Central District of California said witness intimidation and other wrongful...
Broadcom co-founder and former CEO Henry Nicholas and ex-Chief Financial Officer William Ruehle are free men after District Judge Cormac J.