Former Broadcom CEO, Finance Chief Plead Not Guilty To Fraud, Drug Charges

June 16, 2008 2:28 p.m. EST

Santa Ana, CA (AHN) - Henry T. Nicholas III, the former CEO of chipmaker Broadcom, Monday plead not guilty to 21 government fraud and drug-related charges.

The former head of Broadcom earlier this month was named in two federal indictments, including allegations Nicholas took part in stock options backdating that later led to the company restatingmore than $2 billion in January 2007.

The government also said Nicholas kept a warehouse of drugs and hired prostitutes.

Nicholas served as CEO and president since Broadcom was founded until 2003, when he resigned.

Also, former Broadcom chief financial officer William J. Ruehle plead not guilty to fraud charges. Ruehle retired in 2006 after joining the company in 1997.

Both are free on bond until a July 29 trial.