The cooperation of former personal aid Craig Gunther doesn't bode well for Brodacom's founder, Henry T. Nicholas, who's trial on financial and drug charges is pending.

Nicholas is quite the colorful fellow - one of the original dot com billionaires and the kind of guy that would build a "sex cave" under his mansion.

The information possessed by Gunther, given his years as major domo of the Nicholas household, could no doubt be quite damaging to his former boss.

As per his plea agreement, Gunther plead guilty to two misdemeanors and he is expected get as little as probation in exchange for his cooperation with prosecutors.

-- MDT

Labels: Craig Steven Gunther, Henry Nicholas

Labels: backdating, Broadcom, class action, Henry Nicholas, SEC

Federal prosecutors have moved a step closer to Broadcom co-founder, Henry T. Nicholas III, filing criminal charges against California attorney Craig Steven Gunther, who spent several years managing Nicholas's personal finances.

The Gunther indictment doesn't specifically mention stock option backdating. Early in the year the company made a massive $2.5 billion restatement resulting from backdating irregularities (the original estimate was more like $704 million) and saw its CFO resign as a result of the issues.

More on the Gunther indictment via Reuters.

-- MDT

Labels: backdating, Broadcom, Craig Steven Gunther, Gregory Reyes, Henry Nicholas, stock options