Risk Management

A Broadcom Apology, while Ex-CFO Waits

With sentencing next month, billionaire cofounder Samueli says he's sorry he lied to the SEC. Former finance chief Ruehle and cofounder Nicholas ar...
Stephen TaubAugust 26, 2008

Broadcom Corp. cofounder Henry Samueli, scheduled to be sentenced Sept. 8 on a felony count of lying to the Securities and Exchange Commission, apologized to the judge in a two-page written statement.

Fellow cofounder Henry T. Nicholas III and former Broadcom CFO William Ruehle, meanwhile, are still awaiting trial after having pleaded not guilty in June to committing fraud by backdating Broadcom stock options.

“I have spent days and nights thinking about why I said what I did in front of the SEC on May 25, 2007,” Samueli wrote in a letter filed with U.S. District Judge Cormac Carney Monday, according to an Associated Press report. “My statement before the SEC was completely out of character for me. I have tried to live my life in a way that showed that hard work and honesty were their own reward.”

Samueli, a billionaire philanthropist, also is owner of the National Hockey League’s Anaheim Ducks franchise. His title at Broadcom was chairman and chief technology officer.

Ruehle has denied 21 securities fraud charges in Santa Ana, Calif., federal court. He was accused of filing false statements with the SEC, committing wire fraud, and falsely certifying financial reports. Ruehle is free on a bond of $2.6 million.

Nicholas pleaded not guilty to 25 counts contained in two indictments unsealed June 5. One of the indictments involves 21 charges alleging improper accounting for stock-option backdating at the microchip maker.

Nancy Tullos former vice president of human resources, earlier this year pleaded guilty to obstruction of justice in exchange for her cooperation.

According to the AP, prosecutors have recommended that Samueli get five years probation and pay at least $12 million in penalties.

Samueli also wrote in his apology letter that he initially fought the case because he did not want to have a felony on his record, according to the AP. However, he decided to take responsibility for his actions after discussing the issue with family and friends.