If you read through the indictment charges reported around the web on Broadcom Corp.’s (NASDAQ: BRCM) co-founder and former CEO Henry Nicholas, it reads like something fit for tabloids. The thing is that it isn’t.
Nicholas and former CFO William Ruehle also conspired in the options backdating scheme according to this, and it noted that Nicholas sold more than $1 Billion in company stock.
It gets better though. If you will recall an employee alleging that he had been forced on certain issues you will get a kick out the rest of the charges. Reuters reported that Nicholas was also charged with spiking customers’ drinks with ecstasy, distributing cocaine, and other drug charges. Also alleged were hiring prostitutes for himself and for business associates. To top that off, bribes and "threats of violence" were alleged as well.
The good news is that is all likely going to fall on him and his co-conspirators as the company has at least settled part of the matter. Where did the guy learn his client entertainment tricks? You’d think he must have worked on Wall Street.
Broadcom shares are up over 3% today at $29.05. It looks like the only aspect to this story for shareholders from here is the entertainment aspects of the case.
Jon C. Ogg
June 5, 2008
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