Judge rejects backdating case against former Broadcom executives

[Newsjock]

Source: Associated Press

SANTA ANA — A federal judge Tuesday dismissed all charges against the remaining two defendants in the government's sweeping securities fraud case against chip maker Broadcom, citing what he called "shameful" prosecutorial misconduct and a lack of evidence.

The dismissals were a stunning reversal that elicited gasps from the courtroom and tears from Broadcom's former chief financial officer and former CEO, who had faced the prospect of years in prison if convicted.

U.S. District Judge Cormac Carney dismissed the charges two days before the jury was to begin deliberations for former CFO William Ruehle, who had pleaded not guilty to 14 counts of fraud and conspiracy related to stock-option backdating.

... "I find that the government has intimidated and improperly influenced the three witnesses critical to Mr. Ruehle's defense and the cumulative effect of that misconduct has distorted the truth-finding process," Carney said. "To submit this case to the jury would make a mockery ... of the constitutional right to due process and a fair trial."

... Tuesday's rulings were a brutal blow for the government, which obtained indictments against Nicholas and Ruehle last year after federal authorities in 2006 began investigating stock options granted by hundreds of companies. While many companies settled with the Securities and Exchange Commission, criminal cases were much less common, and they've had trouble sticking.

Read more: http://www.mercurynews.com/business/ci_14001020

[paulsby]

1. how a propos

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x7225942

[stopbush]

2. I'm glad the judge threw out his BS case.

[salib]

3. Sounds like an extreme decision by the judge

From his statement: "To submit this case to the jury would make a mockery ... of the constitutional right to due process and a fair trial."

Submitting it to a jury is part of due process. The trial is a part of due process. There is also the right of appeal, which is part of due process.

However, to yank this one away for the jury really smells, at least to me.