Henry Samueli, the billionaire chairman of Broadcom Corp., has refused an informal request to be interviewed by federal criminal investigators looking into the manipulation of stock-option grants at the Irvine technology company, people with knowledge of the probe said.
The sticking point has been the government's refusal to assure Samueli that he is only a witness and not a subject of the investigation, these people said. The government won't make this promise, they said, because it is still scrutinizing Samueli's role.
Federal authorities have suggested to Broadcom's attorneys that the company should encourage Samueli to cooperate, asking the lawyers, "What, if anything, are you going to do about this?" one person said.
The company has attempted to stay out of the fray, this person said, saying it hoped the government and Samueli could work something out.
The people who spoke about the case did so on condition of anonymity, saying the probe by the FBI and the U.S. attorney's office was still in its early stages. The company also has disclosed that the Securities and Exchange Commission is conducting a formal review.
In an e-mail message, Samueli's attorney, Gordon A. Greenberg, called the statements about his client "highly inappropriate and misleading." He did not elaborate.
David Siegel, an outside attorney for Broadcom, said the company had no comment "except to reiterate that it is cooperating with the government authorities."
"We can also add that Dr. Samueli did cooperate fully and voluntarily with the company's internal investigation," he said.
Broadcom's explosive growth in the 1990s made Samueli, 52, an iconic figure in the Southern California technology industry. He and his wife, Susan, have become pillars of the Orange County community, donating millions of dollars to universities and charities, buying the Anaheim Ducks hockey team and funding a new venue at the Orange County Performing Arts Center.
His refusal to be interviewed stands in contrast to the actions of Apple Inc. Chairman Steve Jobs, whom federal authorities have interviewed in a similar probe related to stock options.
But securities law expert John C. Coffee said Samueli's attorneys probably advised him to avoid an unconditional interview, citing the experience of lifestyle entrepreneur Martha Stewart.
When Stewart talked to prosecutors, "She thought she was offering information that would show how she wasn't involved" in insider trading, said Coffee, a professor at Columbia University's law school.
