Broadcom Co-Founder Pleads Guilty

Henry Samueli, the co-founder of Broadcom and a technology billionaire, pleaded guilty in Santa Ana, California, yesterday to a single felony charge of lying to the SEC regarding an alleged scheme to manipulate stock options. Under the agreement, the government will recommend five years' probation and $12.2 million in fines and penalties. Sentencing is scheduled for August 18, 2008.

This is yet another example of white collar defendants finding themselves charged for conduct that occurred after the original event under investigation. In the LA Times story below, Professor John Coffee of Columbia University commented, "Most of these high-powered people who rise to that level of stature have perfected their ability to talk their way out of problems. . . That's a fatal mistake when you're dealing with the government. You've got to shut up."

See the LA Times story here:
http://www.latimes.com/business/la-fi-samueli24-2008jun24,0,3244548.story

See the Samueli Plea Agreement here:
http://www.latimes.com/media/acrobat/2008-06/40317969.pdf

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