Drug Charges Widen Broadcom Investigation

Law360 (July 13, 2007, 12:00 AM EDT) -- Government prosecutors investigating stock-options backdating at Broadcom Corp. have reportedly become interested in allegations that former CEO Henry T. Nicholas III spiked clients' drinks, offered prostitutes to customers and forced his employees to use drugs.

Kenji Kato, a former bodyguard to Nicholas, further alleged that Nicholas fell into a cycle of drug use and would often stay up for days at a time in a confused state, according to the Wall Street Journal, which broke the story Friday.

It was not immediately clear how the alleged drug use would help the government's case against Broadcom's executives. One theory, according to the...

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