Samueli a free man

Not only was Newport Beach billionaire and Broadcom co-founder Henry Samueli’s guilty plea with the government thrown out, but so was the entire case against him, and others charged in the case may have a similar fate, transcripts released from last week’s court hearing show.

Samueli had pleaded guilty to lying to the Securities and Exchange Commission about his role in the company backdating stock options for its employees. While he awaited sentencing in the case, he was given limited immunity by U.S. District Judge Cormac J. Carney and testified in Broadcom Chief Financial Officer William Ruehle’s trial. Ruehle faced similar charges. Over two days of testimony, Samueli convinced Carney that he did not intentionally lie.

“But under the law, at least the way I understand it, a material false statement is a significant event, one that would subject you to five years in prison. And on [your] response, there is no way in heck I would even consider putting anyone in prison for five years,” Carney said. “I’m dismissing the information. My understanding of the law, that’s double jeopardy, so you’re not going to be prosecuted for anything dealing with your SEC testimony again.”

Samueli is a free man. He was recently reinstated as active owner of the National Hockey League’s Anaheim Ducks.

His fate, and Carney’s comments, shed light on how Carney could be approaching a motion by Ruehle’s attorney for dismissing the case.

The defense is arguing prosecutorial misconduct and is seeking to have Ruehle’s case thrown out. Lawyers for the Broadcom executives argue witnesses were coerced into testifying.