Former Broadcom CEO and cofounder Henry Nicholas III directed a criminal stock-options backdating scheme that cost his company $2.2 billion, but also abused cocaine, hired prostitutes, and slipped ecstasy into his customers’ drinks, according to federal indictments. Nicholas faces 21 charges related to the backdating scheme, but also a four-charge narcotics indictment for, among other things, keeping a warehouse stocked with drugs for parties. “The drug case seems to be a lot stronger,” said former federal prosecutor Dan Margolis. (Reuters)
The Bottom Line
June 6, 2008
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