Judge: Broadcom Co-Founder's Plea Deal Suggests Justice is for Sale
A federal judge in Santa Ana, Calif., has tossed a plea deal that involved a hefty fine but no jail time in the backdating case against Broadcom co-founder Henry Samueli.
U.S. District Judge Cormac Carney said the deal creates the impression that “justice is for sale,” the Daily Journal reports (sub. req.). “The $12 million payment contained in this plea agreement suggests that Dr. Samueli’s wealth and popularity will allow him to avoid the consequences of his alleged misconduct,” Carney wrote in a 22-page order.
Samueli had agreed to plead guilty to lying about backdating under oath, pay $12.2 million in penalties and accept a sentence of five years’ probation, the story says. He now has two choices: renegotiate the plea deal or go to trial.
In the plea agreement, Samueli admitted he lied in a deposition with the Securities and Exchange Commission when he testified he was not involved in granting stock options at his company, but was aware of the process. Prosecutors said the testimony was contradicted by e-mails, according to the story.
Samueli “slunk back in his chair during the hearing,” the story says. Afterwards, Samueli’s lawyer, Gordon Greenberg of McDermott Will & Emery, “made a hasty exit from the courtroom.”
