PrintA federal judge informed a jury in the criminal fraud trial of former Broadcom Corp. executive William J. Ruehle on Thursday that a prosecutor committed misconduct, resulting in the granting of full immunity to an accused co-conspirator in the case.
U.S. District Judge Cormac J. Carney told jurors that Assistant U.S. Attorney Andrew Stolper made "several inappropriate remarks" during a conversation with lawyers for Broadcom 's former general counsel, David Dull, who took the witness stand Thursday.
The instance of prosecutorial misconduct, Carney found, occurred after Dull was given partial immunity Monday in order to have him testify as a defense witness.
After Monday's hearing, Stolper talked with Dull's lawyers on the phone and said that Dull could face perjury charges if his testimony is similar to that given in a deposition to the Securities and Exchange Commission.
A hearing was held Wednesday about the conversation, and Carney expressed concern that Stolper seemed to be negotiating testimony with Dull's lawyers.
On Thursday, Carney gave Dull full immunity from prosecution - a move that wasn't opposed by federal prosecutors. Prosecutors have conceded Stolper's phone call limited their ability to bring criminal charges against Dull, who is named as a co-conspirator in the case.
Carney also ordered that Stolper refrain from conferring with other government lawyers during the pending testimony of Broadcom co-founder Henry Samueli, who is expected to take the stand Tuesday. Samueli, who awaits sentencing on one count of lying to the SEC, was given judicial immunity earlier this week in order for him to testify in the trial.
Both Dull and Samueli had said they would invoke their Fifth Amendment protection against self-incrimination if called to testify without immunity.
Ruehle is accused of engaging in an options-backdating scheme that inflated Broadcom 's earnings by $2.2 billion, from which he is accused of profiting $77 million.
His lawyer, Richard Marmaro, contends Ruehle didn't commit any crimes and has described backdating as a common accounting mistake made by executives at about 200 companies.
Prosecutors also are pursuing criminal charges against Broadcom co-founder Henry T. Nicholas III, who goes to trial in February on fraud charges
Dull was questioned by Marmaro about his work for the company and his involvement with former employee Merhdad Nayebi, who had accused executives of backdating options after his October 2000 firing. Dull said neither he nor Ruehle was involved in the hiring or separation of Nayebi - whose accusations are part of the government's indictment against Broadcom executives.
Dull will continue testifying today. The trial could wrap up by the end of next week.