U.S. District Judge Cormac Carney (C.D. Cal.) has rejected a proposed plea agreement for Broadcom Corp. co-founder Henry Samueli which called for a sentence of five years probation and a $12.25 million fine. The court ruled that the agreement was too lenient, and postponed Samueli’s sentencing.
Samueli, who also owns the Anahein Ducks, pleaded guilty in June of this year to a charge of making a false statement to SEC investigators following Broadcom’s restatement of $2 billion in compensation expenses last year, according to a Reuters report.
The court ruled that the proposed sentence “would erode the public’s perception of our justice system to accept a plea agreement containing an unprecedented payment of $12 million to resolve a criminal liability of one of four conspirators in an alleged $2.2 billion securities fraud.”
A U.S. Attorney spokesman was quoted as stating that if the government cannot reach a new agreement with Samueli he may be subject to indictment, and that prosecutors are prepared to go to trial.