Broadcom co-founder Samueli leaves guilty plea in place
If you’ve been following the unraveling of Henry Samueli, here’s the latest: The Broadcom co-founder and ex-CTO has decided not to withdraw his guilty plea and appeal, even though it means he could face a harsher sentence than the agreement with prosecutors.
US District Judge Cormac J Carney in September rejected a plea deal that would have seen Samueli stay out of jail and pay a $12 million fine. Carney did so because in his opinion the excessive fine would have been viewed by the public as Samueli buying his freedom.
Samueli’s options then were to withdraw the guilty plea and go to trial, to appeal the Carney’s ruling, or to work with prosecutors on an alternative plea settlement.
Leaving the plea in place and appealing, Samueli is betting that he can still avoid prison time, the max for this crime being five years.
Samueli’s mess started when he lied to the Securities and Exchange Commission about stock-option backdating at Broadcom. Busted in June, he then made the plea under a deal with federal prosecutors.
This blog’s readers seem to be divided as to whether Samueli should be forced to trade his pinstripe suit for an orange jumpsuit. Some readers, like "Rita," believe Carney was right to turn down the deal.
She posted a comment on September 10 at 2:14:32pm to this series previous "Broadcom’s Samueli on thin ice" post stating: "The judge got it right. The magnitude of the offense and the obstruction deserves some jail time, probation and community service. If it were as lesser amount of money for a ‘regular joe,’ he would already be in jail."
But there are many, many readers who have defended Samueli in this blog, calling him "sincere" and pointing out his contributions to the tech community, as well as his local community. Like a reader identified as "Craig" who commented on September 13 at 10:35:19pm: "Jail???? Are you kidding me!!! This is guy has done more positive actions for his country and community than 99.9% of Americans!!!!"
The appeal of Carney’s rejection likely will not be completed until next March. And it seems that Carney wants to hold off on Samueli’s sentencing until after his Broadcom co-founder Henry Nicholas goes to trial. Nicholas pleaded not guilty to the stock-option backdating charges and separately pleaded not guilty to allegations of drug use and distribution. Nicholas’s trial is scheduled for April, but it could be delayed. Right now, Samueli’s sentencing is scheduled for August.
What do you think? Samueli’s taking a big risk holding the guilty plea. Will the appeal work in his favor? Share your thoughts below.
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