Government will not appeal dismissal of criminal charges against Broadcom co-founders
By APFriday, May 28, 2010
Govt drops appeals in Broadcom backdating case
SANTA ANA, Calif. — Federal prosecutors say they won’t appeal the dismissal of criminal charges against the founders of high-tech chip maker Broadcom.
U.S. attorney’s spokesman Thom Mrozek said Friday that the government decided not to appeal the cases against Henry T. Nicholas III and Henry Samueli.
A federal judge cited prosecutorial misconduct and lack of evidence last year in tossing out fraud charges against Nicholas.
The judge also set aside Samueli’s guilty plea to one count of lying to SEC investigators.
The two were accused of backdating stock options, an accounting practice that allowed employees to boost profits when they sold shares.
Nicholas also faced narcotics charges that were dismissed.
