A lawyer who worked for Broadcom Corp. cofounder Henry “Nick” Nicholas has pleaded guilty to evading a banking law and could work with prosecutors as they prepare stock fraud and drug cases against his former boss.
Craig Gunther, who served as chief operating officer of Nicholas’ family office for more than five years, pleaded guilty to two misdemeanor counts Friday and could face up to two years in prison, according to the Associated Press and the Los Angeles Times.
Gunther could end up avoiding prison as part of a plea agreement with prosecutors.
Prosecutors with the U.S. Attorney’s office in Santa Ana accuse Gunther of withdrawing more than $10,000 in cash in early 2006 without reporting the transaction, a violation of federal banking laws.
They allege Gunther went on to withdraw more than $500,000 in a number of transactions less than the $10,000 limit to evade the reporting requirement.
In the spring, Nicholas faces a trial on fraud charges related to stock options backdating at Broadcom, where he was chief executive from its founding in the early 1990s to 2003.
Nicholas faces a separate case on drug charges that is set to go to trial later in 2009.
It’s unclear if Gunther would have any insight into options backdating at Broadcom.
Prosecutors may want him as a witness as they try to build a drug case against Nicholas, who is accused of buying and furnishing drugs to others.
Nicholas has denied the charges in both cases.
Prosecutors said Nicholas regularly requested tens of thousands of dollars in cash from Gunther.
