Somewhere in the skies between Orange County and Las Vegas, federal prosecutors say, Broadcom Corp. co-founder and hard-partying billionaire Henry T. Nicholas III gave new meaning to the term "highflying."
Winging their way to Sin City in 2001, Nicholas and his entourage generated so much marijuana smoke that it billowed into the cockpit, "requiring the pilot flying the plane to put on an oxygen mask," according to a federal grand jury indictment made public Thursday.
The indictment, issued under seal a day earlier, accused Nicholas of doling out drugs and prostitutes as part of a freewheeling lifestyle.
A second indictment accused Nicholas of manipulating stock options at Broadcom, the Irvine-based maker of computer chips used in such products as mobile phones, Apple Inc.'s iPod and Nintendo Co.'s Wii consoles.
Broadcom co-founder Henry Samueli was not charged, but was referred to as an "unindicted co-conspirator" in the stock options indictment, which identified him by his initials.
The two founded Broadcom in 1991. They are among the best-known entrepreneurs in Southern California, having helped shape Orange County's modern image as a technology magnet.
The Securities and Exchange Commission last month accused Samueli and Nicholas of backdating stock options to make them more valuable, leading Samueli to step aside as Broadcom's chairman pending resolution of the case.
Samueli, who also owns the National Hockey League's Anaheim Ducks, has denied any wrongdoing.
Nicholas, who stepped down as Broadcom's chief executive in 2003, surrendered Thursday morning to the FBI.
In a 21-count indictment, Nicholas and William J. Ruehle, 66, Broadcom's former chief financial officer, were accused of backdating millions of stock options for five years to improperly reward employees.
A second, four-count indictment names only Nicholas, 48, and alleges that he maintained homes and commercial properties in Orange County and Las Vegas for the "purpose of using and distributing controlled substances," including cocaine and methamphetamine.
Among other things, Nicholas allegedly supplied Broadcom customers with prostitutes and narcotics he sometimes referred to as "party favors." He is accused of slipping drugs into some of their drinks.
"Defendant Nicholas spiked the drinks of others with MDMA (ecstasy) without their knowledge, including . . . the drinks of technology executives and representatives who worked for Broadcom's customers," the indictment alleged. No victims were identified by name.
