Former Broadcom CEO in drug scandal
Aside from being accused of backdating, former Broadcom CEO Henry Nicholas is also facing charges of slipping drugs into business associates' drinks. Nancy Marshall Genzer explores Nicholas's troubled reputation.
Former Broadcom CEO Henry Nicholas (Danny Moloshok/Reuters)
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TEXT OF STORY
Scott Jagow: Stock option backdating cases aren't usually titillating. Except this latest one. The former CEO of Broadcom -- it's a computer chip maker -- is accused of backdating and costing his company a fortune. But beyond that, what a piece of work this guy is. Nancy Marshall Genzer explains.
Nancy Marshall Genzer: No one matches the description of "high flyer" better than Henry Nicholas. According to indictments unsealed yesterday, in 2001, Nicholas smoked so much marijuana during a flight on one of his private jets, the pilot had to put on an oxygen mask.
Prosecutors say this Nicholas was no saint. They claim he stashed drugs in a warehouse. Ever think a CEO might have been on drugs when he made a dumb deal? Well, maybe so. Prosecutors accuse Nicholas of slipping drugs into business associates' drinks without their knowledge.
University of Richmond law professor Carl Tobias says the prosecutors' drug charges came as a surprise, but:
Carl Tobias: They wanted to have as many charges made against him and hopefully force him to cut a plea deal.
Nicholas's attorney says he's innocent. Nicholas, who was nicknamed Darth Vader because of his competitiveness, is expected to fight the charges.
In Washington, I'm Nancy Marshall Genzer for Marketplace.
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06/06/2008
Broadband isn't just a chip-maker. They specialize in the chips that allow set-top boxes and television to process cable signals. Which means the folks he was slipping mickeys to could well have been cable industry executives. It will be interesting to see where this story goes.
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