Judge denies Samueli

Even though local billionaire philanthropist and Broadcom Corp. founder Henry Samueli would be out $12 million and be on probation for five years for pleading guilty to lying to federal authorities, a federal judge ruled Monday that such a punishment was not tough enough.

“While [federal prosecutors] and Dr. Samueli have stipulated to what they believe is the appropriate sentence in this case, the court has an independent obligation to ensure that the stipulated sentence is fair, appropriate and in the interest of justice,” wrote Judge Cormac Carney in his ruling rejecting the federal government’s plea agreement with Samueli. “The stipulated sentence could ... create unacceptable disparities in sentencing between Dr. Samueli and other similarly situated defendants.”

Samueli, along with Irvine-based company co-founder Henry T. Nicholas and Chief Financial Officer William Ruehle, is accused of coordinating a $2.2 billion stock option scheme that awarded the company’s employees stock options and fraudulently backdated when they were awarded, rewarding their own above and beyond the compensation they reported to company shareholders.

Samueli, whose name is on UCI’s School of Engineering and the Orange County Performing Arts Center’s theater, would have faced no prison time or been required to testify against Nicholas or Ruehle. The University of California general counsel is reviewing possibly removing Samueli’s name from UCI’s engineering school, UCI officials said.

“The public expects the court to treat all defendants equally, without regard to race, religion, ethnicity, class or wealth. The $12 million payment contained in this plea agreement suggests that Dr. Samueli’s wealth and popularity will allow him to avoid the consequences of this alleged misconduct at Broadcom,” Carney wrote in his ruling. “The court cannot accept a plea agreement that gives the impression that justice is for sale.”

Because the court has rejected the plea agreement, Samueli has the option of withdrawing his guilty plea.

A status conference on possible sentencing is scheduled in federal court in Santa Ana Sept. 29.

JOSEPH SERNA may be reached at (714) 966-4619 or at [email protected].