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Jun 10, 2008 - 11:15 AM

Arnold's #4 donor indicted on federal fraud charges

by Mark Reback
Henry Nicholas, the multiply indicted co-founder and ex-CEO of Broadcom, is also Gov. Schwarzenegger's #4 overall donor. He and his NSC Holdings LLC have given $1,650,000 into Arnold's various campaign committees since 2003. Arnold may not be running for any immediate office, but given the sweep of federal charges against Nicholas, why is Schwarzenegger keeping the money? Arnold ought to give it to charity, or contribute it to the bleeding state general fund to help offset the giant deficit.

Nicholas, as some will recall, was indicted on 21 federal fraud charges last Thursday. He and William J. Ruehle, 66, Broadcom's former CFO, were accused of backdating millions of stock options for five years to improperly reward employees.

And, as most everyone will recall, a separate, four-count indictment has alleged that Nicholas used his homes and commercial properties in Orange County and Las Vegas for the use and distribution of illegal drugs. Nicholas allegedly supplied Broadcom customers with hookers and drugs, which he called "party favors." He also is accused of slipping drugs into some of the customers' drinks, and back in 2001 on a plane trip to Vegas, Nicholas and friends apparently smoked so much marijuana that it required "the pilot flying the plane to put on an oxygen mask." If Nicholas' checks are still on file in Sacramento, someone should test them for drug residue...

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