Irvine's Broadcom Corp. Co-Founder Indicted for Securities Fraud and Drug Charges
Henry Nicholas III, co-founder of Irvine, Californias Broadcom Corporation was formally charged with distributing illegal narcotics, distributing narcotics to prostitutes and spiking the drinks with ecstasy of executives in the technology field. Mr. Nicholas along with his attorneys appeared in federal court in Santa Ana, California to plead not guilty to all charges.
Nicholas, of Newport Beach, California was also charged in federal court with securities fraud. The securities fraud allegation stems from the alleged backdating of stock options for employees. William Ruehle, Broadcoms former CFO was also named in the federal indictment. Broadcoms Co-founder Henry Samueli was not named in the indictment, however, there was a loose reference to him by way of initials used in the indictment as a unindicted co-conspirator.
In the drug indictment, Nicholas is being accused of using and distributing ecstasy, methamphetamine and cocaine. In an attempt to cover up his criminal conduct, the indictment alleges Nicholas used threats of physical violence and death and payments of money to conceal his unlawful conduct. The indictment also alleges Nicholas used his properties in Laguna Hills, Laguna Niguel, Newport Coast and Las Vegas for the purpose of distributing and using controlled substances.