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Broadcom leader said to resist probe

Sources say Chairman Henry Samueli has refused to be questioned in a federal inquiry into backdated options.

February 16, 2007|E. Scott Reckard | Times Staff Writer

Last month, Broadcom said its internal investigation determined that Nicholas bore "significant responsibility" for improperly backdated options that forced the company to slice $2.2 billion off its past financial statements to reflect unreported expenses, the largest charge taken to date by any of the companies under scrutiny.

Nicholas' attorney, John Spiegel, has said his client did not knowingly engage in improper backdating.

The internal probe excused Samueli, saying he "relied on management and other professionals" in signing off on option grant dates. The inquiry also found that the backdating benefited other Broadcom employees, but not Nicholas and Samueli personally.

Unlike Samueli, Nicholas refused to be interviewed for the company's internal investigation into the backdated options, Broadcom has said.

The company also has identified two departed executives it said were actively involved in manipulating options: Nancy Tullos, former head of human relations, and William Ruehle, former chief financial officer.

Tullos' attorney, Ismael "Izzy" Ramsey, declined to comment.

Ruehle's attorney, Richard Marmaro, said, "If he's indicted we'll go to trial."


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