Ex-Navy SEAL refuses to testify against Broadcom co-founder
A federal judge in Santa Ana sent a former Navy SEAL to jail Monday for refusing to testify against computer chip billionaire Henry T. Nicholas III, who had hired the veteran of conficts in Iraq and Afghanistan to provide security and companionship for Nicholas' children.
Stephen "Otter" Otten has refused to testify before a federal grand jury investigating allegations of improperly backdated stock options at Broadcom Corp. of Irvine, which Nicholas co-founded, even after he was promised immunity from prosecution, said Assistant U.S. Atty. Andrew Stolper, the lead prosecutor.
Otten watched impassively as his lawyer, Dean Steward of San Clemente, argued that his client should not be held in contempt because his emotional ties to Nicholas and his three children had made him in effect a member of the family.
Otten, 30, felt bonds of loyalty as powerful as those he had forged with his commando comrades, Steward said.
Because of those powerful ties, Steward also argued that it would be futile to try to coerce testimony from Otten, a veteran of clandestine operations in Afghanistan, battles against Iraqi insurgents in Fallujah and Navy SEAL training in resisting interrogation.
"Sitting over at the Santa Ana jail is simply not going to change his mind," Steward said.
U.S. District Judge James V. Selna said he accepted Selna's characterization of Otten as a modern war hero. But he said there are no legal grounds to excuse family members from grand jury testimony, adding that Otten is not a Nicholas family member in any case.
Going to jail for civil contempt, especially given the fact that the government could later file felony criminal contempt charges, might provoke Otten "to do the right thing," Selna said.
Otten appeared relaxed as he surrendered his belt, identification and Chapstick to bailiffs, and offered to remove his black suit coat as they took him into custody. They told him he could keep the coat on, handcuffed him and led him away.
Selna scheduled a hearing for June 2 into whether to extend Otten's jail time.
Part of the hearing, dealing directly with the grand jury proceedings, was held in closed court. But the open session provided a rare public acknowledgment of the grand jury proceedings. Stolper told the judge that the grand jury would continue to meet through October, unless its term is extended, meaning Otten could be jailed until then if the grand jury still needs his testimony.
scott.reckard@latimes.com
