# Billionaire Drug Bust



## Richard King (Mar 25, 2002)

http://www.thesmokinggun.com/archive/years/2008/0605082nicholas1.html
Broadcom's co-founder charged in tawdry narcotics indictment


> JUNE 5--A technology billionaire was a drug fiend who trafficked in cocaine, Ecstasy, and methamphetamine, spiked the drinks of business associates and employees, hired prostitutes for himself and others, and maintained several narcotics dens, including one in an underground lair at his Los Angeles mansion, prosecutors charge. In a remarkable federal indictment unsealed today in Los Angeles, Broadcom co-founder Henry T. Nicholas III is portrayed as an out-of-control wild man who scored drug caches for Super Bowl parties and rock festivals and had his dealer invoice him for these illicit purchases. A copy of the felony drug conspiracy indictment against Nicholas, who is reportedly worth about $2 billion, can be found below. The 48-year-old Nicholas, who was charged with securities fraud in a separate U.S. District Court case, allegedly "used threats of physical violence and death and payments of money to attempt to conceal his unlawful conduct," according to the indictment. Prosecutors allege that, in June 2002, Nicholas and Broadcom entered into a $1 million settlement agreement with an employee who was aware of the executive's "unlawful narcotics activity." The hefty payout, which Broadcom covered, contractually prevented the employee from speaking about Nicholas's drug abuse. The billionaire apparently did little to conceal his drug transactions. On one occasion, in the lobby of Broadcom's southern California headquarters, he directed an employee to provide cash to a courier "in exchange for an envelope containing controlled substances," the indictment charges. On a drug-fueled 2001 private plane flight--during which Nicholas allegedly used and distributed narcotics--the pilot was forced to don an oxygen mask due to the "marijuana smoke and fumes." According to a March 2008 Forbes story, Nicholas, with an estimated net worth of $1.8 billion, is ranked 677 on the list of the world's wealthiest individuals.


More.... Broadcom chips are found in many, if not all, satellite receivers. This guy was totally out of control. I hope he loses the total of his fortune.


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## Button Pusher (Jan 19, 2007)

Whoa! Talk about a waste. Maybe he thought he was above the law or had paid off the right people to look the other way.


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## phat78boy (Sep 12, 2007)

If this was anyone who wasn't worth millions, they would never get out of jail on the charges he is looking at. Hopefully it won't make me sick following this story only to see how the extremely rich can get away with anything.


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## Spanky_Partain (Dec 7, 2006)

Broadcom supplies a LOT of chips for ALL the PC makers HP, Dell, and IBM just to name a few. They make the 10/100/1000 multi-function network chips, they supply the guts of the Directv DVR's, not to mention all the other fingers they have their hands in.

This is amazing!


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## dms1 (Oct 26, 2007)

Richard King said:


> More.... Broadcom chips are found in many, if not all, satellite receivers.


Not to mention most, if not all, cable STBs and cable modems, and numerous networking products.


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## phat78boy (Sep 12, 2007)

To be fair, he hasn't been involved with operations of Broadcom for a few years already. I don't know why this would directly effect Broadcom as a company.


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## James Long (Apr 17, 2003)

> A technology billionaire was a drug fiend who trafficked in cocaine, Ecstasy, and methamphetamine, *spiked the drinks of business associates and employees*, hired prostitutes for himself and others, and maintained several narcotics dens, including one in an underground lair at his Los Angeles mansion, prosecutors charge.


Hopefully not when doing Broadcom work.


> Prosecutors allege that, in June 2002, Nicholas and *Broadcom entered into a $1 million settlement agreement* with an employee who was aware of the executive's "unlawful narcotics activity." The hefty payout, which Broadcom covered, *contractually prevented the employee from speaking about Nicholas's drug abuse.*


A company covering up a felony ... not good.


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## Nick (Apr 23, 2002)

> Nicholas, with an estimated net worth of $1.8 billion, is ranked 677 on the list of the world's wealthiest individuals.


You're worth almost $2 billion and you're only _677th_ on the richest list? Looks
like a billion isn't what it used to be,

Bummer. :shrug:


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## phat78boy (Sep 12, 2007)

James Long said:


> A company covering up a felony ... not good.


I thought they claimed the 2.2 billion as a loss last year to offset the coverup? Either way, the loss and any ensuing fine is only a slap on the wrist for the company. Jail should be expected for those who knowingly were invloved, but they still have the market cornered for now. All they need to do is hire a great PR firm and keep making quality chips.

As for Nicholas, I hope the justice system does the right thing if he is found guilty.


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## Richard King (Mar 25, 2002)

I believe there is a Broadcom chip in nearly all Dish Network receivers also. I am sure someone who is more familiar with the guts can confirm that.

If I were one of those whose drink he spiked I would own him. I would sue him into poverty for such an act.


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