<![CDATA[Gawker: valleywag, henry nicholas]]> http://tags.gawker.com/assets/base/img/thumbs140x140/gawker.com.png <![CDATA[Gawker: valleywag, henry nicholas]]> http://gawker.com/tag/valleywag/henrynicholas http://gawker.com/tag/valleywag/henrynicholas <![CDATA[Ex-Broadcom CEO wanted to give himself more jailtime]]> The political leanings of Broadcom's former CEO, Henry Nicholas III, make for some post-election headscratching. Proposition 6 was one of the two state ballot measures he had underwritten and supported — to the price tag of $6 million — to increase penalties for gang and drug crimes, even satellite tracking of sex offenders. Nicholas is the same guy who is under federal indictment for felony drug use and conspiracy, building out sex dungeons for liaisons with prostitutes, and securities fraud. Good thing voters didn't pass it.

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<![CDATA[AMD sells digital TV arm to Broadcom for $193 million]]> Chipmaker AMD's cash reserves dropped 17 percent during the first half of 2008. To boost that investor-worrying number, AMD has agreed to sell its digital-TV business to Broadcom for $193 million. 530 AMD employees will join Broadcom as a result. A job perk: Hearing about the fun times Broadcom veterans enjoyed when ex-CEO Henry Nicholas ran the shop.

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<![CDATA[Henry Nicholas pleads not guilty on fraud and drug charges]]> Nevermind the multiple witnesses to Broadcom co-founder Henry Nicholas' drug and prostitute habit. Nevermind the $2 billion restatement of earnings by Broadcom over backdated stock options. Dr. Henry T. Nicholas, still worth $2 billion himself while staying at a $60,000 plus substance abuse treatment clinic in Malibu under bond has plead not guilty to the charges listed in various federal indictments. A jury trial will commence on July 29th, with Nicholas joining co-founder Henry Samueli, former CFO William Ruehle and general counsel David Dull as defendants possibly taking the stand to describe their logical actions as sober and conscientious executives just doing their fiduciary duty to shareholders. I hate to try people outside the judicial system, but seriously, does anyone see any consequence beyond the lightest "club fed" sentence for these guys if found guilty?

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<![CDATA[Drug-linked Broadcom cofounder Henry Nicholas's hypocrisy detailed, making for an even better screenplay]]> Henry Nicholas, the cofounder and former CEO of telecom chipmaker Broadcom, gave $2.5 million to a crime-victims charity, and $3.5 million to defeat a 2004 bill that would have weakened California's "three strikes" law that doles out life sentences to multiple felony offenders, motivated by the death of his younger sister Marsalee Nicholas at the hands of evil drug dealers. This was after the alleged drink-spiking, border-crossing, threats-making, and hush-money paying episodes in his life federal prosecutors detailed in the charges on which Nicholas is due to be arraigned tomorrow. Now that the story has hit the New York Post the clock is ticking on an hour-long teleplay for one of the Law and Order franchises. The nominations from our casting call have been made and seconded, so take our poll and decide if Daniel Day-Lewis, Viggo Mortensen or Nicholas Cage should attach themselves to the project.

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(Photos by AP/Damian Dovarganes, Mark J. Terrill, Dima Gavrysh, Carolyn Kaster)

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<![CDATA[Henry Nicholas used drugs while under indictment, according to YouTube video]]> A video that was posted to YouTube last summer portrayed a tall man ingesting a powdered substance nasally — and the subject was confirmed to be Broadcom cofounder and former CEO Henry Nicholas. That's according to Nicholas's attorney Susan Szabo. In order to get the clip taken off the popular video sharing site, Szabo confirmed that the man featured was her client and that the moment was filmed in his home and without his consent. The email exchange was submitted to the court by prosecuting attorneys [PDF] in order to bolster their case that Nicholas is a flight risk and a danger to himself and others, and therefore should not be granted freedom while awaiting trial. They also included an account of Nicholas crashing his Lamborghini last November, and then having his security guard take the rap. The judge eventually ruled the defendant be held under "home detention." After the jump, the email exchange between Szabo and YouTube.

(Photo by AP/Damian Dovarganes)

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<![CDATA[Casting call for inevitable Henry Nicholas biopic]]> It wasn't a coincidence that I mentioned Robert Evans in a post about everyone's favorite drug-addled, sex-obsessed and federally indicted entrepreneur Henry Nicholas of Broadcom. With Josh Hartnett starring in what looks like a schlocky ode to dot-com excess in August, the details of Nicholas' indictment reading more like the outline of Blow, and locations ripped from The OC and Laguna Beach, it's perfect fodder for a Hollywood screenplay. In fact, Evans protegĂ© Brett Ratner could produce, with Michael Mann directing and Paul Haggis as the ghostwriter for the script Nicholas would be daft not to pen while locked up at Betty Ford. But any good package needs an "opener" as they say in the biz — a big name star for the marquee to draw crowds. So I ask you, dear readers, who would you cast as Nicholas?

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<![CDATA[Henry Nicholas donated the equivalent of 50 tabs of ecstasy to the Bush campaign]]> Broadcom bad boy Henry Nicholas wasn't just a surprisingly inept industrial consumer of drugs and prostitutes with a handful of posh properties scattered across the OC — he was also a Bush donor. According to campaign finance disclosure documents, he gave $1,000 in 1999 to the George W. Bush campaign during the primary season in 1999. Or, at the $20 per dose he was paying for MDMA, the equivalent of fifty tabs. Maybe that's what Nicholas meant by "party favors?"

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<![CDATA[Sex, drugs, and violence: The 10 surprises in Henry Nicholas's indictment]]> Nothing former Broadcom CEO Henry Nicholas did is particularly remarkable to anyone who's enjoyed Brett Morgen's The Kid Stays in the Picture biopic about the life and times of Robert Evans. What's remarkable is that it was a technology CEO in Orange County and not someone in the abnormally amoral entertainment industry. As cynical and jaded as we may be about the foibles of the ultrarich of the Valley, even we were surprised by some of the stunts detailed in the allegations, if only for their naïveté.

  • 10. Prostitutes: Absolutely nothing surprising about that, since there are more tech titans of our acquaintance known to prefer quantitative intimacy to qualitative intimacy, as it's just so much more efficient.
  • 9. Code words: Anyone familiar for looking for an apartment on Craigslist should know what "420 friendly" means. What's slightly surprising is that Nicholas used such common slang as "party favors" when arranging a score. Your run-of-the-mill paranoid drug dealer is more creative.
  • 8. Minions: That Nicholas employed flunkies and other hangers-on to do his dirty work isn't particularly surprising, either. But that he had employees on Broadcom's payroll running errands for him certainly raises an eyebrow. And cost him $1 million in hush money.
  • 7. Doctor shopping: To get the amounts of Vicoprofen (hydrocodone and ibuprofen) and Valium (diazepam) Nicholas wanted on hand, he had scripts written up for associates. With a private jet, why not just fly down to Mexico and stock up? That seems easier. One smuggling run is a lot less risky than dozens of doctor visits.
  • 6. Drink spiking: While spiking another executive's drink with ecstasy would normally be pretty surprising, I'm pretty sure more than a few techies have been accidentally dosed at Burning Man. What shocks me was that it as at a Super Bowl party in New Orleans. I though techies hated team sports!
  • 5. Wire transfers: For a guy who was on all sorts of stimulants, he was surprisingly blasé about being surveilled. Leaving multiple records of five-figure drug deals is the first clue that this guy felt invincible. That he broke the $10,000 rule to keep transactions under the IRS's radar is no-no No. 2.
  • 4. Budgets, invoices and petty cash: Leave it to a businessman to have fellow junkies draw up a budget for a Super Bowl party, have dealers submit invoices for large orders of MDMA and direct Broadcom employees to keep $10,000 on hand at all times for Nicholas's whims.
  • 3. Death threats: Even Robert Evans, when angered, probably only threw around some verbal abuse on the order of "You'll never work in this town again." But a tech geek reverting to mafia tactics? That's new.
  • 2. Hotboxing a plane: By "causing marijuana smoke and fumes to enter the cockpit" of his private plane on a flight to Nevada, Nicholas may go down in history. That seems more like something the boys of Entourage would do, not something an Orange County entrepreneur would indulge in, rock star friends or no.
  • 1. Woodstock '99: Even more surprising is that a guy who issued death threats would go to an anniversary of the world's most famous love-in. I mean, I knew Woodstock '99 was a corporate sham, but little did I know exactly how corporate things were when apparently a tech titan (and football fan) was slinging tablets of ecstasy to concertgoers.
(Photo AP/Nathan Denette)]]>
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<![CDATA[The Turnberry condo]]>

One Turnberry Place, 2877 Paradise Road, Suite 3201, Las Vegas, NV

When Nicholas felt like picking up a prostitute or three, doing some high-stakes gambling or just crossing state lines for the generally more permissive laws of Nevada, Nicholas kept a suite on the 32nd floor of a Las Vegas high rise — just a few hundred yards from the Las Vegas Hilton. The getaway was just a quick trip on his private jet, and exemplifies the high life in more ways than one.

Need a refresher? See all five of Henry Nicholas's drug dens.

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<![CDATA[The Telescope house]]>

9 Telescope, Newport Coast, CA

Nestled in the San Joaquin hills overlooking the Pacific Ocean on a quiet estate of nearly identical Spanish Colonial villas was what I can only assume to be the typical "mistress apartments," where guests of Nicholas could shack up near his Laguna Hills home without disturbing his family life. It was conveniently located equidistant from the Broadcom offices in Irvine as his other home in Laguna Hills.

Next: The Turnberry condo

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<![CDATA[The Rodeo residence]]>

Rodeo Circle, Laguna Hills, CA

Judging by the layout of this posh cul-de-sac, this is where Nicholas probably put up his ex-wife — and also where he probably built his secret underground lair for entertaining prostitutes from from the prying eyes of neighbors. Which didn't stop them from complaining about the unpermitted construction that went on at all-hours thanks to Nicholas demands that contractors race to complete the grotto.

Next: The Telescope house

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<![CDATA[The warehouse]]>

27324 Camino Capistrano, Laguna Niguel, CA

Behind the unassuming facade of this industrial building was where Nicholas and his cohorts kept their stash. According to the indictment, his minions were under orders to keep the facility stocked with amphetamine, cocaine and MDMA or "ecstasy" at all times. I can only presume a raft of downers — from marijuana to benzodiazepines like Valium and painkillers like Vicoprofen were also on hand to take the edge off.

Next: The Rodeo residence

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<![CDATA[Broadcom's offices]]>

5300 California Avenue, Irvine, CA

All work and lots of play certainly made Nicholas far from dull. According to the indictment, he had employees of Broadcom meet drug couriers in the lobby of the company's offices in Irvine. One employee even signed an agreement to keep quiet about the excessive habits of the CEO in exchange for $1 million. All of Nicholas other properties in California were conveniently close to the Irvine campus as well.

Next: The warehouse

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<![CDATA[The five drug dens of bad-boy ex-CEO Henry Nicholas]]> How can everyone have missed the most lurid aspect of the fall of former Broadcom CEO Henry Nicholas? Amidst all the sex and drug charges, we've missed the one subject that really gets people's tongues wagging: real estate. Thanks to laws passed in America's "war on drugs," any property involved in the transportation, storage and sale of illegal narcotics is subject to seizure. Thanks to the magic of Google Maps and Street View, we can also get a glimpse into the somewhat banal landscape of Nicholas's party circuit under the oppressively constant sunshine of Southern California's Orange County and Nevada. Let's start at Broadcom headquarters.

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<![CDATA[Debauchery of Broadcom founder Henry Nicholas detailed in unsealed indictment]]> In what may become a seminal document in the history of the dot-com era for its detailed account of excess, the recently unsealed indictment on drug charges of Broadcom founder and former CEO Henry Nicholas describes everything from spiking the drinks of fellow executives to five-figure wire transfers for "party favors" such as cocaine, methamphetamine and MDMA. The broad strokes of Nicholas' drug and prostitute habit, and the lavish grottoes he built to play with both in, have been public for a while. But the blow-by-blow account is fascinating. And these are just the drug and sex charges. Nicholas and other execs at the Southern California chip maker are also under fire from the Securities and Exchange Comission for their role in an fraudulently backdating stock options to enrich themselves and their associates. According to reports, Nicholas is currently at the posh Betty Ford Clinic.

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<![CDATA[Broadcom gives "backdating" a whole new meaning]]> After the SEC accused Henry Nicholas and Henry Samueli, founders of chipmaker Broadcom, of illegally backdating stock options for five years, Samueli stepped down as board chairman and CTO. Nicholas had stepped down from his post as CEO in 2003 amidst allegations of having a drug habit and flying friends and prostitutes from around the country to an underground party lair he'd built in his home.

Samueli, pictured above in his role as owner of NHL's Anaheim Ducks, denied any wrongdoing in a statement. Nicholas could not be reached as he is reportedly now at the posh Betty Ford clinic undergoing rehabilitation for substance abuse. The suit also names former CFO William Ruehle and current general counsel David Dull, seeking a return to shareholders of "ill-gotten gains" and to bar all four principals from serving in any public company. (Photo by AP/Lawrence Jackson)

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