Not guilty pleas over Broadcom

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Henry Nicholas III, former chief executive of Broadcom, has also denied ecstasy and cocaine offences.

The company's former chief financial officer, William Ruehle, has pleaded not guilty to the options charges.

Nicholas is accused of keeping a supply of illegal drugs that he used to spike the drinks of industry executives and Broadcom customers at parties. He is also said to have entertained customers at parties with prostitutes and extravagant trips on the company jet.

He is due back in court next Monday to discuss returning to a drug rehabilitation programme interrupted by his indictment and to negotiate $3.3 million (£1.7 million) bail, the terms of which include drug testing, home detention and electronic monitoring.

Nicholas, who co-founded Broadcom and resigned as chief executive in 2003, and Ruehle face 21 charges of backdating share options so executives benefited from subsequent share-price rises.

The company had to take a $2.2 billion accounting charge in 2007 after failing to record the stock-based pay expenses.