Broadcom backdating scandal

But even though many of press accounts have reproduced some of Judge Carney’s harshest words – particularly his statement that the government’s treatment of a third defendant, Henry Sameuli, was "shameful and contrary to American values of decency" – the excerpts do not come close to capturing the depth and breadth of the Judge’s condemnation of the prosecutor’s conduct.

The transcript of the December 15 hearing at which Judge Carney delivered his ruling can be found here.

Yet the legal outcome is perhaps less important than the psychological and reputational toll taken on the men who turned Broadcom into a digital powerhouse, these experts say.

Executives caught in scandals are stuck in a “social jail” even if they avoid a physical one, said Ed Merino, of Irvine-based executive coach and consultancy Office of the Chairman.

Companies can put a favorable historical date on stock options, but they must disclose the practice.

Among other things, he cites the prosecutors for "intimidating and improperly influencing" witnesses, which "compromised the truth process and compromised the integrity of the trial"; for making improper leaks to the media; for improperly pressuring Broadcom to terminate Samueli; for obtaining an "inflammatory indictment" of Samueli; and crafting "an unconscionable plea agreement" with Samueli. Among other things, Judge Carney said that "the lead prosecutor somehow forget that truth is never negotiable." Of the case against Ruehle, Judge Carney said that to submit it to the jury "would make a mockery of Mr.There has been widespread news coverage of the dramatic December 15, 2009 decision of Central District of California Judge Cormac Carney to throw out the options backdating related criminal charges against Broadcom co-founder Henry T.Nicholas III and CFO William Ruehle, based on prosecutorial misconduct.“It’s not hurray they dodged the bullet,” Merino said.Execs at other companies are more likely to think, “I don’t want to go through that.” U. District Judge Cormac Carney on Tuesday dismissed charges against Henry Nicholas, who co-founded Broadcom, and acquitted Broadcom’s former chief financial officer, William Ruehle.

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