Billionaire Broadcom (BCOM) Founder Indicted For Drugging Customers and "Warehousing" Ecstasy, Meth, and Cocaine. And Stock-Option Backdating

Broadcom’s founder is in a heapload of trouble. AP:

A founder of the Broadcom Corporation, Henry T. Nicholas III, was indicted Thursday on fraud, conspiracy and drug charges — including accusations that he spiked the drinks of colleagues and customers with ecstasy and maintained a warehouse for ecstasy, cocaine and methamphetamine. In addition, he is accused of running a stock options backdating scheme.

The charges were contained in two indictments unsealed by federal authorities.

One details the drug accusations and the other accuses Mr. Nicholas of improper accounting in the backdating stock options while he led the company, a computer and mobile phone chip maker.

That indictment also names Broadcom’s former chief financial officer, William J. Ruehle, who faces conspiracy, securities fraud and other charges. He is not charged with drug violations.

Thom Mrozek, spokesman for the United States Attorney’s office, said Mr. Nicholas was in custody after turning himself in to FBI agents in Santa Ana.

Henry is No. 258 on Forbes’ billionaire list.

Photo: Forbes

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