And he hired Rich Marmaro and his white collar criminal defense team from Skadden Arps – to prove his case.And in a remarkable two-month trial in 2009, they fought back against what they alleged and what the judge agreed was prosecutorial misconduct. Ruehle has written a book that is destined to become an instant classic in the annals of corporate and white collar crime. Ruehle, You are a Free Man — A Broadcom Saga — My Fight for Justice.I will give it all of the attention it deserves, but not attention it doesn’t deserve.I’m not going to buy into the fact that I’m a felon, as the government is accusing me of being.” “One way I can cope with this is to carry on a life and not get into a depression.” “And he said – the very first time he talked to me.” “I remember asking Rich early on – how does he think the Assistant U. Attorney is going to react when they hear he’s my attorney?And he said – he’s going to know we’re going to fight.” “I don’ t know what Skadden’s record is on plea agreements. If they thought their client had no chance at trial, I don’t think they would subject their client to trial.” Early on in the case, Ruehle caught a break. Ruehle says he believes the judge saw him “as a straight shooter.” And Ruehle believed the judge to be fair.Although this practice gave the senior executives significant stock holdings, since the grant was issued at-the-money, the share price had to appreciate before the executives would actually earn a profit.A 1982 amendment to the tax code created an incentive for executives and their employers to work together to break the law.
One problem for federal prosecutors – Ruehle believed he didn’t commit a crime.So, he granted the Rule 29 motion.” “He also ruled there was prosecutorial misconduct. On the drug case against Nick, the judge asked the government to come back to him within 30 days to explain why that case should go forward.” “Within a week or so, the government dropped that case.” “He also dismissed without prejudice the four SEC cases and asked the SEC to come back and say why those cases should go forward. “The lead prosecutor was investigated by the Department of Justice.That would cause the trial to be dismissed, but the government could retry it.” “Rule 29 for me is the same as a jury acquittal. “Within about six weeks, the SEC came back and said – we are not going forward.” “He had already dismissed the Henry Samueli plea agreement. So, it was a big day.” Did Ruehle get emotional while he was reading his decision? But it’s hard not to be emotional when that happens,” Ruehle said. I know they interviewed the judge and the defense attorney.” What result? He’s still working there.” “The number of prosecutors accused of misconduct is fairly large.Ruehle spent nine years at Broadcom, helping the company evolve “from a small aspiring private company to an industry powerhouse,” he writes.But when the options backdating scandal hit the fan at Broadcom, the search for scapegoats was on. And it didn’t take him long to learn about the key document in corporate crime law. Ruehle reprints the entire memo at the back of his book.And he said – it’s not for sale, not in his courtroom. “We learned over the weekend that the judge had also invited company founders Henry Samueli and Henry Nicholas and Broadcom general counsel David Dull. There was an overflow room with a video feed in it because there were so many spectators.So, he turned down the plea agreement.” After an eight week trial, Ruehle’s defense team filed two motions – a Rule 29 motion to dismiss the charges for lack of evidence, and a motion to dismiss the charges for prosecutorial misconduct. We were the four accused by the SEC.” “Only two of us had been accused by the Department of Justice.” “Had there been an SEC trial, it would have been before Judge Carney.” “The SEC case had been stayed pending the criminal trial. There were a lot of reporters.” “The judge walked in.“Wilson Sonsini was recommended to me by the Irell & Manella people both for civil and criminal,” Ruehle told in an interview last week. “It seemed like my attorneys at Wilson were spending a lot of time trying to persuade me on how important it might be to try and reach a plea agreement with the other side,” he said. It seemed like my attorneys were better at pointing out all of the merits of the government’s case than the merits of my case.So, I talked with some others who had some experiences with the law.” “I got a recommendation from Frank Quattrone to call Rich Marmaro at Skadden.” So, Ruehle switched from Wilson Sonsini to Skadden Arps. “There was no more talk about entering a plea,” Ruehle said.And the government had improperly influenced three key witnesses – Henry Samueli, by getting this bogus plea agreement, David Dull, by putting him on ice, as the judge put it.” “And Nancy Tullos was the VP for human resources. She had also pled to a non-existent crime.” “The judge said the government had 26 meetings with her to prep her for her testimony.The judge said he had no confidence that what she said was from her own recollection as opposed to what the government wanted her to recall.” “He said her evidence would have to be struck from the record.” “Therefore, there was no evidence of any kind of criminal activity. It’s hard to know how to react.” Did anything happen to the prosecutors?