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Nicholas May Soon Fly on Gulfstream G-IV In a decision which could have wide-ranging implications for US law enforcement at all levels, US District Judge Cormac Carney told prosecutors pursuing drug and investment charges against Broadcom executive Henry T Nichols III that they went too far in seizing his Gulfstream G-IV and threatening to impound it indefinitely.As ANN reported last week, the California businessman asked the court's permission for his family to continue flying the bizjet...The 1993 Gulfstream, registry N2107Z, was seized in a July 16 raid at John Wayne Airport. The FBI asserts Nicholas "...distributed ecstasy, cocaine, methamphetamine and...

Indictment: Broadcom co-founder had narcotics warehouse, hired prostitutes, drugged associates SANTA ANA, Calif. (AP) -- Federal prosecutors may have charged Broadcom co-founder Henry T. Nicholas III in one of the largest stock-option backdating cases in U.S. history, but it was allegations that the billionaire drugged his business cohorts, hired prostitutes and maintained a drug warehouse that grabbed headlines. A pair of indictments unsealed Thursday charge the 48-year-old with conspiracy and securities fraud in an alleged scheme to backdate stock options that ultimately forced Broadcom to write down $2.2 billion in profits last year. But prosecutors also detailed a litany of...

SANTA ANA, Calif. — Federal officials unsealed one indictment today alleging co-founder Henry T. Nicholas III of chip maker Broadcom Corp. spiked the drinks of technology executives and customer representatives with ecstasy and maintained a warehouse for ecstasy, cocaine and methamphetamine.A second indictment unsealed today accuses him of conspiracy, securities fraud and other violations relating to stock options backdating while he was CEO.That indictment also names Broadcom's former chief financial officer, William J. Ruehle, on conspiracy and securities fraud charges but no drug violations. Thom Mrozek, spokesman for the U.S. Attorney's office, said Nicholas was in custody after turning himself...

Excerpt - Just got a nervous call from my lawyers who said they wanted to give me a "heads up" about a "situation" at Broadcom. See more about it here. Basically the feds are going after some Broadcom execs over some options backdating stuff. I'm like, So what? I don't work at Broadcom. They're like, Um, well, see, Broadcom did its own internal investigation and already cleared these guys, and the SEC isn't buying it apparently, and though the company itself has already settled the whole thing the SEC is still going after the executives as individuals. Now you do...

SEC charges Broadcom co-founders with stock option backdating LOS ANGELES (AP) -- Federal officials on Wednesday charged Broadcom Corp. co-founders Henry T. Nicholas III and Henry Samueli with falsifying the company's reported income by illegally backdating stock options for five years. A criminal complaint filed by the Securities and Exchange Commission also charges former chief financial officer William J. Ruehle and general counsel David Dull. The four men are accused of violating federal securities laws by misrepresenting the dates on which stock options were granted to its executives and employees. The SEC said that as a result of the scheme,...

Ex-CEO accused of building secret lair 2 hours, 1 minute ago The co-founder of semiconductor maker Broadcom Corp., under scrutiny in a federal stock options probe, was accused seven years ago of building an underground hideaway at his estate to indulge in drugs and sex with prostitutes, according to court documents. In a draft complaint made against Henry T. Nicholas III, a construction crew claimed the billionaire failed to pay them millions of dollars for work performed between 1998 and 2002, and used "manipulation, lies, intimidation, and even death threats" when anyone threatened to quit. The illegal network of tunnels...

Paging U.S. Trade Representative Susan Schwab: Please call us on your cell phone. And better do it fast because cell phones may soon be harder to come by thanks to one of the dumber rulings ever by the U.S. International Trade Commission.

Excerpt - A federal agency on Thursday barred the import of new models of cell phones that contain semiconductors made by Qualcomm Inc., because the chips violate a patent held by a rival, Broadcom Corp. The U.S. International Trade Commission's decision represents a compromise between a ban on all phones with Qualcomm chips, as Broadcom requested, and a ban only on the chips themselves, as recommended by an ITC administrative law judge late last year. ~ snip ~

US firms accuse Qualcomm of unfair practices in South Korea SEOUL, July 3, 2006 (AFP) - Two US technology firms have filed a complaint with South Korea's antitrust watchdog accusing US mobile phone chip developer Qualcomm of abusing its market dominance, officials have said. The Fair Trade Commission (FTC), a state organization watching for fair trade, said the complaint was lodged by Texas Instruments and Broadcom. "Qualcomm was accused of selling its handset chips bundled with other chip products by using its market dominance," an FTC official said. Qualcomm has monopoly market status in South Korea as the sole supplier...