Ex-CEO of Broadcom Pleads Not Guilty on 21 Charges

by Jarrett Martineau | June 16, 2008 at 10:47 am

105 views | 0 Recommendations | 0 comments

And still we wonder how billionaires become billionaires...

Broadcom co-founder Henry T. Nicholas III pleaded not guilty Monday to federal drug and securities fraud charges.

The 48-year-old billionaire entered the pleas to 21 counts contained in two indictments unsealed June 5.

One indictment details what authorities claim was one of the largest stock-option backdating cases in U.S. history while Nicholas led the giant computer chip company.

The other accuses him of drugging his business cohorts, hiring prostitutes and maintaining a drug warehouse.

Former Broadcom CFO William J. Ruehle pleaded not guilty to 21 securities fraud charges at the Monday hearing.

A trial date was set for July 29. Both men remained free on bond.