Business

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Billionaire Henry T. Nicholas III, pictured here in a 2004 interview with the Associated Press.

Billionaire Busted for Sex, Drugs and Fraud

June 06, 2008 02:53 PM
by Rachel Balik
Former Broadcom executive Henry Nichols III was indicted on June 5 in Orange County for stock fraud, using drugs and hiring prostitutes.

30-Second Summary

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Henry T. Nicholas III made a fortune cofounding the Orange Country-based technology company, Broadcom, and then used his money to give “party favors” like ecstasy and cocaine to business associates, sometimes without their knowledge. Nicholas had a secret den built under his house and hosted debauched parties there that not even his wife knew about.

Nicholas, with other Broadcom executives, also faces indictment for charges of stock fraud at the company. The Securities and Exchange Commission claims that Nicholas and his confederates were trying to “fraudulently backdate stock option grants, failing to record billions of dollars of compensation expenses and falsifying documents to further the fraud.”

He was also accused of refusing to pay the construction workers who built his underground drug lair, but settled the case out of court. 

Headline Link: ‘O.C. tech billionaire indicted’

Background: Past Allegations

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