LOS ANGELES (CN) - Broadcom agreed to pay $12 million to settle SEC charges of falsifying its income by under-reporting $2.2 billion in backdated stock options for its executives. The fine amounts to 0.5 percent of the money involved in the company's book juggling.
Broadcom's top executives, including its CEO, cherry-picked the dates at which the stock grants were supposedly approved, and its general counsel directed the preparation of false reports to conceal the book juggling, according to the complaint.
From June 1998 to May 2003, Broadcom overstated its income by between 15 percent and 422 percent, understated its losses by between 16 percent and 38 percent, and hid the $2.22 billion in expenses it incurred by showering stock options upon its executives.
Broadcom agreed to settle the charges without admitting guilt. The settlement is subject to approval by the federal court.
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