Broadcom in the abyss of scandal

[img_assist|nid=8033|title=|desc=|link=none|align=left|width=100|height=75] Henry T. Nicholas, the co-founder and ex-CEO of Broadcom, microchip manufacturing company, was accused in roguery, drug storage and adding ecstasy into the beverages of the company clients.

Broadcom Company is producing microchips for mobile phones. Besides, it is a leading manufacturer of Bluetooth-modules and their drivers.

As per accusation, Nicolas used several ‘points’, including his own residence in California, for distributing and selling drugs including cocaine and methamphetamine.

The second indictment unsealed Thursday charged the 48-year-old and his ex-CFO 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.

Nicolas is to be fined $3.4 million and his accessory is to pay $2.6 million. Until then Nicolas will undergo rehabilitation procedure and be retained in house custody. The attorneys of both defendants are insisting on their nonculpability. As per Nicolas’ lawyer his client intends to avoid the charges and he is sure he will be fully absolved.

The charges threaten to ground a high-flying lifestyle that prosecutors say featured the former CEO jetting around the world in his two private planes, building a secret lair under his house and hiring strippers to party at a private warehouse stocked with cocaine, methamphetamine and ecstasy.