Backdating options sec

The largest settlement in an options case was million paid by Mercury Interactive in May 2007.

Nancy Tullos, Broadcom’s former vice president for human resources, settled an SEC complaint in this case in March and pleaded guilty to a federal criminal complaint in January.

In January 2007, Broadcom announced a .2 billion non-cash restatement of prior results, the largest restatement by a company implicated in questionable accounting practices surrounding its employee stock options.

backdating options sec-32

(7) If any person died or sustained bodily injury, increase the offense level according to the seriousness of the injury: (A) If an alien was involuntarily detained through coercion or threat, or in connection with a demand for payment, (i) after the alien was smuggled into the United States; or (ii) while the alien was transported or harbored in the United States, increase by 2 levels. .—A conviction taken into account under subsection (b)(1) is not excluded from consideration of whether that conviction receives criminal history points pursuant to Chapter Four, Part A (Criminal History). : (A) In a case in which subsection (b)(1)(A) or (b)(1)(B) does not apply and the defendant has a prior conviction for possessing or transporting a quantity of a controlled substance that exceeds a quantity consistent with personal use, an upward departure may be warranted. "Foreign terrorist organization" (A) means an organization that engages in terrorist activity that threatens the security of a national of the United States or the national security of the United States; and (B) includes an organization designated by the Secretary of State as a foreign terrorist organization pursuant to section 219 of the Immigration and Nationality Act (8 U. (2) If the offense was tantamount to attempted murder, apply §2A2.1 (Assault with Intent to Commit Murder; Attempted Murder) if the resulting offense level is greater than that determined above.If the resulting offense level is less than level 18, increase to level 18. (B) In a case in which the 12-level enhancement under subsection (b)(1)(A) or the 8-level enhancement in subsection (b)(1)(B) applies but that enhancement does not adequately reflect the extent or seriousness of the conduct underlying the prior conviction, an upward departure may be warranted. § 1101(a)(43), a downward departure may be warranted. .—In a case in which the defendant is located by immigration authorities while the defendant is serving time in state custody, whether pre- or post-conviction, for a state offense, the time served is not covered by an adjustment under §5G1.3(b) and, accordingly, is not covered by a departure under §5K2.23 (Discharged Terms of Imprisonment). In such a case, the court may consider whether a departure is appropriate to reflect all or part of the time served in state custody, from the time immigration authorities locate the defendant until the service of the federal sentence commences, that the court determines will not be credited to the federal sentence by the Bureau of Prisons. (3) If the offense involved extortion, apply §2B3.2 (Extortion by Force or Threat of Injury or Serious Damage) if the resulting offense level is greater than that determined above.(B) If (i) the defendant was convicted of alien harboring, (ii) the alien harboring was for the purpose of prostitution, and (iii) the defendant receives an adjustment under §3B1.1 (Aggravating Role), increase by 2 levels, but if the alien engaging in the prostitution had not attained the age of 18 years, increase by 6 levels. "Immigration and naturalization offense" means any offense covered by Chapter Two, Part L. (C) In a case in which subsection (b)(1)(A) applies, and the prior conviction does not meet the definition of aggravated felony at 8 U. Any such departure should be fashioned to achieve a reasonable punishment for the instant offense. "Chemical weapon" has the meaning given that term in 18 U. (1) If the defendant is convicted of a single count involving (A) the death or permanent, life-threatening, or serious bodily injury of more than one victim; or (B) conduct tantamount to the attempted murder of more than one victim, Chapter Three, Part D (Multiple Counts) shall be applied as if the defendant had been convicted of a separate count for each such victim."The offense was committed other than for profit" means that there was no payment or expectation of payment for the smuggling, transporting, or harboring of any of the unlawful aliens. "Minor" means an individual who had not attained the age of 16 years. Such a departure should be considered only in cases where the departure is not likely to increase the risk to the public from further crimes of the defendant. .—In determining the sentence within the applicable guideline range, the court may consider the degree to which the violation threatened a security interest of the United States, the volume of the funds or other material support or resources involved, the extent of planning or sophistication, and whether there were multiple occurrences. § 175(b); or (B) the offense (i) involved a threat to use a nuclear weapon, nuclear material, or nuclear byproduct material, a chemical weapon, a biological agent, toxin, or delivery system, or a weapon of mass destruction; but (ii) did not involve any conduct evidencing an intent or ability to carry out the threat. .—For purposes of this guideline,"permanent or life-threatening bodily injury" and "serious bodily injury" have the meaning given those terms in Note 1 of the Commentary to §1B1.1 (Application Instructions). .—Subsection (d) applies in any case in which the defendant is convicted of a single count involving (A) the death or permanent, life-threatening, or serious bodily injury of more than one victim; or (B) conduct tantamount to the attempted murder of more than one victim, regardless of whether the offense level is determined under this guideline or under another guideline in Chapter Two (Offense Conduct) by use of a cross reference under subsection (c). .—The base offense level in subsection (a)(1) reflects that offenses covered by that subsection typically pose a risk of death or serious bodily injury to one or more victims, or cause, or are intended to cause, bodily injury.“At all times he believed he was complying with company rules, as well as accounting and legal requirements,” said Brad Brian of Munger Tolles & Olson in Los Angeles. Nicholas personally benefit from any alleged options backdating.” Samueli, who also owns the Ducks hockey team, declined to comment.

Also implicated in the SEC complaint is William Ruehle, who resigned as Broadcom’s Chief Financial Officer in September 2006, after a company investigation accused him of retroactively choosing dates when the stock was trading low to award stock option grants.“The backdating scheme at Broadcom went on for five years, involved dozens of option grants, and resulted in the largest accounting restatement to date arising from stock option backdating,” said Linda Chatman Thomsen, director of the SEC’s Division of Enforcement.“The scope and magnitude of the fraud warrants the significant penalty imposed on the company.” Federal criminal and civil investigations continue against top Broadcom executives, including the chairman and chief technical officer, Henry Samueli, and the former chief executive officer, Henry T. § 1327 of a violation involving an alien who was inadmissible under 8 U. (2) If the offense involved the smuggling, transporting, or harboring of six or more unlawful aliens, increase as follows: (3) If the defendant committed any part of the instant offense after sustaining (A) a conviction for a felony immigration and naturalization offense, increase by 2 levels; or (B) two (or more) convictions for felony immigration and naturalization offenses, each such conviction arising out of a separate prosecution, increase by 4 levels. (2) 13, if the object was a weapon (other than a firearm or a destructive device), any object that might be used as a weapon or as a means of facilitating escape, ammunition, LSD, PCP, methamphetamine, or a narcotic drug. If the adjustment in §2P1.2(b)(1) applies, no adjustment is to be made under §3B1.3 (Abuse of Position of Trust or Use of Special Skill). In a case in which the defendant is convicted of the underlying offense and an offense involving providing or possessing a controlled substance in prison, group the offenses together under §3D1.2(c). Depending upon the nature and quantity of the substance involved and the risk associated with the offense, a departure of up to two levels in either direction may be warranted. Where a defendant has previously engaged in similar misconduct established by a civil adjudication or has failed to comply with an administrative order, an upward departure may be warranted. § 1182(a)(3); (2) 23, if the defendant was convicted under 8 U. (1) If (A) the offense was committed other than for profit, or the offense involved the smuggling, transporting, or harboring only of the defendant's spouse or child (or both the defendant's spouse and child), and (B) the base offense level is determined under subsection (a)(3), decrease by 3 levels. "Precursor" has the meaning given that term in 18 U. (1) 23, if the object was a firearm or destructive device. Therefore, unlike a count in which the statute mandates both a minimum and a consecutive sentence of imprisonment, the grouping rules of §§3D1.1-3D1.5 apply. (6) If the offense involved a simple recordkeeping or reporting violation only, decrease by 2 levels. If death or serious bodily injury results, a departure would be called for. Depending upon the nature of the contamination involved, a departure of up to two levels in either direction could be warranted. Subsection (b)(4) applies where the offense involved violation of a permit, or where there was a failure to obtain a permit when one was required.Ruehle’s attorney denied his client was responsible for violations.