Broadcom co-founder indicted on drug charges

Some readers may know Broadcom for its wide portfolio of integrated circuits, which spans networking/telecommunications transceivers and audio/video processors. The company's latest claim to fame comes from its co-founder and former CEO, who was indicted yesterday on an equally wide range of charges.

The New York Times says a California court has charged Henry T. Nicholas III with fraud, conspiracy, the selling and distribution of drugs, and the hiring of prostitutes. Reportedly, Dr. Nicholas "maintained several residences that were used to distribute and sell drugs, including cocaine and methamphetamine, and threatened to kill people if they talked about his activities." Not only that, but he also allegedly "spiked the drinks of other executives with ecstasy" and hired prostitutes for both himself and Broadcom associates.

Oh, and the court is also charging Nicholas with improperly backdating stock options, leading to a $2.2-billion write down by Broadcom.

Nicholas' lawyer claims his client is innocent of all charges, and the New York Times quotes him as saying, “Dr. Nicholas will contest these charges vigorously. He is confident that he will be fully vindicated.” (Thanks to TR reader Jim for mailing this in.)

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