Jury set to hear Broadcom backdating case against former CFO
By APFriday, October 23, 2009
Openings begin in Broadcom backdating trial
SANTA ANA, Calif. — A jury has been picked for the federal trial of former Broadcom Corp. Chief Financial Officer William Ruehle, who faces conspiracy and fraud charges in an alleged scheme to backdate stock options.
Opening statements were set to begin Friday in U.S. District Court in Santa Ana.
Ruehle was indicted last year along with Broadcom co-founder Henry T. Nicholas III, who also faces separate drug charges. Both have pleaded not guilty.
Backdating stock options occurs when a company retroactively sets the exercise price to a low point in the stock’s value to increase profits for an executive or employee when shares are sold.
If the practice isn’t properly disclosed, it can cause profits to be overstated and taxes to be underpaid.
