SEC Charges Former Broadcom CEO and Others Over Stock Options

Santa Ana, CA (AHN) - The Securities and Exchange Commission has filed civil charges against former Broadcom CEO Henry Nicholas III and three other current and past company executives, calling for them to be fined and barred from corporate boardrooms for their alleged part in a stock option back-dating scheme.

Along with Nicholas, Henry Samueli, Broadcom's chairman and technology chief, Broadcom general counsel David Dull and William J. Ruehle, the chipmaker's former head of finance, were named in the complaint.

Wednesday, Broadcom said Samueli and Dull had temporarily left the company until the government action is complete.

The government alleges the men took part in a stock options backdating scheme that spanned 1998 through 2003. The SEC seeks Ruehle repay $100,000 and Dull $1.8 million.

In April, Broadcom agreed to pay the SEC $12 million to settle a SEC complaint. In 2007, Broadcom restated $2 billion to reflect new expenses as a result of the stock options.