Federal prosecutors are “strongly considering” criminal charges against former Broadcom Corp. Chief Financial Officer Bill Ruehle and one other executive for their part in an options backdating scandal, The Wall Street Journal reported Friday.
Citing sources close to the probe, the Journal reported prosecutors in Orange County are also investigating former Chief Executive Henry Nicholas and current Chairman Henry Samueli. No timetable was given.
Ruehle, who stepped down from the Irvine-based chipmaker last year before facing internal investigators’ questions, has been singled out by the company for his role, though his attorney has professed no crimes were committed.
The company also cited Nicholas and other former executives for a lack of controls and inappropriate grant practices.
Nearly all of the 233 million revised grants were awarded to employees other than executives, Broadcom has said.
Broadcom declined to comment on the investigation, “except to reiterate that the company is cooperating with authorities. Dr. Samueli did cooperate fully and voluntarily with the company’s independent internal investigation.”
Last month, Broadcom revised financial statements for 1998 through 2005 with charges of $2.2 billion for the improperly accounted for stock options.
