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Opening statements given in Broadcom criminal case

October 23rd, 2009, 11:34 am by Rachanee Srisavasdi

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The former chief financial officer for Broadcom Corp. repeatedly lied and backdated millions of stock options that forced the chip manufacturer to restate its earnings by $2.2 billion, and also personally profited $77 million from the crimes, a federal prosecutor said today.

“We’re here because the defendant lied to the Securities and Exchange Commission, lied to Broadcom accountants, and most importantly, lied to Broadcom’s investors, and there were thousands of them,” Assistant U.S. Attorney Andrew Stolper said during opening statements.

But an attorney for William J. Ruehle (shown right, entering the Ronald Reagan Courthouse) countered that his client was not a criminal, and was simply following what he believed were allowable accounting practices.

“Bill Ruehle today is 67 years old and for the first time in his life, he’s being referred to as a criminal,”  attorney Richard Marmaro said.

“Bill Ruehle never intended to defraud Broadcom shareholders and never did,” Marmaro added.

Ruehle and Broadcom co-founder Henry T. Nicholas III, were indicted in June 2008 on charges of conspiracy, securities fraud and wire fraud.  Both have pleaded not guilty to 21 felony counts of accounting and securities fraud stemming from allegations that they misreported $2.2 billion in Broadcom’s employee stock options. The restatement is the largest of any company criminally charged by the government.

Ruehle was already out of Broadcom when he was indicted. He became Broadcom’s CFO in 1997 and retired in September 2006 in connection with the company’s stock options probe.

The jury in his trial was picked by Thursday evening.  The case is expected to last approximately nine weeks.

Nicholas goes to trial in February.  He also faces separate drug charges.

Follow today’s trial developments on Twitter at www.twitter.com/rachanee333

Posted in: Miscellaneous • • • • | 2 Comments »

Opening statements today in Broadcom stock-option backdating case

October 23rd, 2009, 6:00 am by Rachanee Srisavasdi

04.ruehle.102209A jury was picked Thursday for the federal trial of former Broadcom chief executive officer William Ruehle, who faces charges in an alleged $2.2-billion stock option backdating scheme.

So opening statements are scheduled to begin around 9 a.m. today.

 The trial, in the courtroom of U.S. District Judge Cormac J. Carney, is expected to last nine weeks.

Ruehle, along with Broadcom co-founder Henry T. Nicholas III, was indicted last year on charges of conspiracy, securities fraud and wire fraud.  They allegedly engaged in a backdating scheme that resulted in Broadcom’s $2.- billion accounting restatement in 2007.

Nicholas goes to trial after Ruehle. He also faces separate drug charges.

Henry Samueli, Broadcom’s other co-founder, awaits sentencing after pleading guilty to one count of making a false statement to the Securities and Exchange Commission.

“There’s a big question of how juries are going to react to this kind of case,  especially here in Southern California and Orange County,” Lawrence Rosenthal, a professor at Chapman University School of Law, said of Ruehle’s trial.

“From the standpoint of the defense, they will do everything they can to characterize this as a highly technical offense without a real victim.”

Posted in: Courts | Post a Comment »

Carona rival’s lawsuit thrown out

October 22nd, 2009, 10:33 am by Rachanee Srisavasdi

A First Amendment lawsuit brought by former sheriff’s Lt. Bill Hunt against ex-sheriff Mike Carona — a case that was under deliberations by a Los Angeles jury — was tossed out today by a federal judge who granted Carona’s motion to dismiss.

U.S. District Judge Margaret Morrow ruled that in light of the jury’s findings on questions posed to them about Hunt’s role in the department, Hunt was  deemed to be a department policymaker, according to Carona’s lawyer, Norman Watkins.

“The jury’s findings were consistent with the evidence,” Watkins said. “I think the court made the right call.”

Hunt, who is again running for sheriff next year, said he “strongly disagrees” with the judge’s decision. He does not yet know if he is able to appeal the judge’s ruling.

“Obviously, we’re disappointed,” he said.  “I believed in the case. I need to take some time and sort things out and think about what the next step will be.”

The judge also decided that Carona is entitled to “qualified immunity,” which shields public officials from liability for the violation of an individual’s constitutional rights in some cases, Watkins said.

Read the rest of this entry »

Posted in: Miscellaneous | 106 Comments »

Judge Andrew Guilford takes the field at Dodger Stadium

September 17th, 2009, 3:29 pm by Rachanee Srisavasdi

U.S. District Judge Andrew Guilford will wear a cap that reads “Los Angeles Dodgers of Los Angeles” when he takes the field at Dodger Stadium before Friday’s home game against the San Francisco Giants.

It’s a pre-game ceremony involving the Episcopal Diocese of Los Angeles. Guilford will represent the diocese and St. John’s Episcopal Church in Rancho Santa Margarita.

Guilford says he’s a longtime Dodgers fan — more so now than ever, especially after Angels owner Arte Moreno forced his beloved local team to become officially known as the “Los Angeles Angels of Anaheim.”

Here’s the backstory: Before he was confirmed to the federal bench in 2006, Guilford  represented the city of Anaheim in a lawsuit against Moreno,  seeking to ban the “Los Angeles” connection in the official name of the team that plays all of its home games in Anaheim.

The city of Anaheim — and Guilford — lost that case.

Guilford says he is no longer an Angels fan.

“The Angels left me and my community, I didn’t leave them,” Guilford says in an email. “No true fan of the Yankees and baseball would EVER support the New Jersey Yankees playing in Yankee Stadium. No true fan of the Angels and baseball should EVER support the Los Angeles Angels playing in Anaheim Stadium!”

Posted in: Courts • Judges • | 4 Comments »

Prosecutors: Why jail guard wasn’t charged in inmate death

September 16th, 2009, 12:26 pm by Rachanee Srisavasdi

Sept. 18 update: The hearing on the motion to dismiss charges against the inmates — scheduled for today — was delayed to Nov. 20.  A second hearing will be held Oct. 2 on a motion to quash subpoenas against several prosecutors, including District Attorney Tony Rackauckas.

Orange County prosecutors have detailed the reasons why they couldn’t file homicide charges against former sheriff’s deputy Kevin Taylor — who left the Sheriff’s Department in February because of his role in the October 2006 death of jail inmate John Chamberlain.

Nine county jail inmates charged with murdering Chamberlain have asked a judge to dismiss all charges. They say they are being singled out for prosecution, while jail guards, including Taylor, escaped criminal prosecution, according to motion written by lawyer Al Stokke, who represents inmate Michael Garten.

In a filing Tuesday, Deputy District Attorney James Mulgrew said the inmates are not being singled out — but were charged with murder because “they all actively participated in the fatal beating of an inmate!”

“Whether others are being prosecuted or not does not form the basis for a dismissal under these circumstances,” he continued.

Mulgrew also revealed why prosecutors didn’t charge Taylor in the killing. Taylor, who was watching television and text messaging a girlfriend during the beating, is accused by defendant Jared Petrovich of ordering the attack and starting a rumor that Chamberlain was a child molester.

Mulgrew said no one corroborates Petrovich’s claim, and others have gave conflicting accounts.

“Jared Petrovich is the only individual who claims to have been a witness to this alleged statement by Deputy Taylor,” Mulgrew wrote.  “Moreover, there is ample evidence to contradict Petrovich’s assertion. Both inmates … and sworn personnel alike have refuted the allegation that Petrovich was ever summoned outside of the barracks on the day of John Chamberlain’s murder, much less advised that Chamberlain was a ‘child molester.’”

A hearing will be held Friday on the motion to dismiss the case.  Orange County District Attorney Tony Rackauckas has been subpoenaed to testify — though Superior Court Judge James Stotler would still have to decide if such testimony is warranted.

Read the Register’s 2007 investigation into the killing here.

Posted in: Courts • • • | 4 Comments »

Reminder: State courthouses closed today

September 16th, 2009, 6:13 am by Rachanee Srisavasdi

Orange County Superior Court is closed for most proceedings today as part of a cost-saving measure to deal with state budget cuts.

The closures — mainly on the third Wednesday of every month — started last month. The court also is closed two days in December: the 16 and the 30th.

Court employees — including commissioners — are on furlough today. Most judges also have volunteered to donate some of their salary because of the budget crunch.

Posted in: Courts • In the halls of justice • • • • | Comments Off

D.A. spokeswoman lashes out at ex-assistant sheriff

September 15th, 2009, 5:02 pm by Rachanee Srisavasdi

Former Orange County Assistant Sheriff George Jaramillo, sentenced Monday to 27 months in federal prison,  apparently provoked the judge’s ire with a motion his attorney filed in the case last week.

During Monday’s sentencing hearing, U.S. District Judge Andrew Guilford criticized a 25-page response to the government’s pre-sentencing report filed Friday by Jaramillo’s attorney, Brent Romney.

The judge said the motion failed to adequately demonstrate remorse on the part of Jaramillo — and also noted it criticized the federal prosecutor and probation officer in the case, as well as Orange County District Attorney Tony Rackauckas.

Jaramillo served a year in jail in 2007 after pleading no contest to perjury and misusing public funds in a prosecution brought by Rackauckas.  Jaramillo has publicly contended he was unfairly prosecuted, alleging Rackauckas and former sheriff Mike Carona colluded to charge him with crimes.

“It has always been defendant’s contention that the relentless barrage of baseless criminal allegations pursued by the Orange County District Attorney was part of an orchestrated effort on the part of then-Sheriff (Mike) Carona and District Attorney Tony Rackauckas to destroy defendant and defendant’s ability to challenge either man politically …” Romney wrote.

Rackauckas’ spokeswoman, Susan Kang Schroeder, dismissed the accusation, and said state prosecutors had ample evidence against Jaramillo.  She also noted that Jaramillo’s lawyer, Romney, unsuccessfully ran against Rackauckas in 1998.

“We’re dealing with a double felon who is being represented by an attorney who has a personal axe to grind with Tony (Rackauckas),” Schroeder said today. ” Luckily for the people of Orange County, we have a smart judge who not only rejected these ridiculous, baseless claims, but rebuked (Jaramillo) in (his) lack of remorse.”

Posted in: Courts • In the halls of justice • • • | 2 Comments »

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