Federal judge considers tossing charges against former CFO in Broadcom backdating case

Judge could toss charges in Broadcom backdating

SANTA ANA, Calif. — Broadcom Corp.’s former chief financial officer will soon find out whether a judge will toss federal charges against him because of alleged government misconduct.

William Ruehle’s attorneys will argue at a hearing Tuesday that he can’t get a fair trial because a prosecutor leaked information to reporters and improperly contacted lawyers for defense witnesses.

Ruehle has pleaded not guilty to fraud and conspiracy in an investigation into stock option backdating at the Irvine-based chipmaker.

Backdating involves retroactively setting a stock option’s exercise price to a low point in the stock’s value, boosting profits when the shares are sold. It is illegal if not properly disclosed.

The judge last week threw out a guilty plea by Broadcom co-founder Henry Samueli in the same probe, dismissing a charge that he lied to investigators.