A former Navy SEAL who worked as a personal aide to billionaire Henry Nicholas was jailed on civil contempt charges Monday for refusing to testify during a federal grand jury hearing into potential accounting crimes at Broadcom Corp., where Nicholas was the chief executive officer.
Steve “Otter” Otten, 30, of San Diego, was ordered to Santa Ana City Jail for refusing to testify, despite being granted immunity.
“SEALs don’t snitch,” said Otten’s attorney, H. Dean Steward.
Otten, who worked for Nicholas since 2006, argued that he should not be required to testify against Nicholas because he was the equivalent of a family member and because it would violate his military training, arguments that U.S. District Court Judge James V. Selna rejected.
Otten served as a combination security guard and nanny when Nicholas had custody of his three children, Steward said.
Steward said he plans to appeal his client’s incarceration, which could last as long as the grand jury continues its probe. The grand jury is impaneled until October.
Federal officials are investigating possible criminal wrongdoing by Nicholas and other Broadcom executives in the accounting for employee stock options. In January 2007, the Irvine semiconductor company made a $2.2 billion non-cash restatement to accurately account for the cost of the options, which were awarded to employees between 1998 and 2003.
In April Broadcom agreed to pay $12 million, but admitted no wrongdoing, to settle a civil complaint by the Securities and Exchange Commission that it fraudulently reported the accounting costs of the options.
Previous posts on Broadcom
- Broadcom to pay $12 million to settle SEC backdating charges
- O.C. billionaire checks into rehab
- Ex-Broadcom exec agrees to $1.3 million backdating settlement with SEC; Nicholas drops suit against ex-employee
Give me a break . . . “equivalent of a family member and because it would violate his military training” . . .
He ISN’T a family member, and it would also violate his military training to withhold information to the court and to the employees who were slighted in this “accounting error.”
Perhaps Mr. Otten ought to remember that he isn’t a SEAL anymore. He’s a civilian now for a reason. I wonder why . . .
Well said Chris. I also find it amusing that there is something to snitch about.
gotta love those military men
This is hilarious, why doesn’t he trigger his self-destruct button? These guys are like robots, think for yourself.
Mr. Otten, please don’t use SEALs background to cover your bad action. SEALs are protecting friends from emeny, not protecting criminal who steals from innocent poeple.
As a former Army Officer and paratrooper, I can say that it is against military law, and training, to NOT report illegal activity; particularlly to a legal panel like a grand jury. This guy is full of BS.
lets see, he spends 6 months in jail and gets ???? dollars per day times x amount of days equals…..a lifetime of goodies or he could simply say “I dont recall” and annoy the prosecutor. And military and family training issue are mutually exclusive items.
All of you need to shut-up! I guess none of you has ever had the pleasure of serving in the military. So, I would,t think any of you would know anything about duty, honor, or LOYALTY. You are probably a bunch of crybabies that regard the military with disdain until something like 9/11 happens. As an aide he should br granted confidential status. At least he has the morals not to lie and say he does not know anything.
To Chris,
Has it occured to you that this ex-SEAL may not be w/ the armed forces anymore because he has served his country and received his HONORABLE discharge.
If Broadcom has no problem paying a fine of $12 million, but admits to no wroing doing, you would have to think that there is more to the story than an ex-SEAL member not wanting to snitch on a former employer regardless of how this guy wants to spin his story.
Good for you! SEAL! The government doesn’t deserve you to cooperate with them. Always look out for yourself, because the government won’t.
hmmm….I thought that Seals take an oath to protect and uphold the constitution and the laws of the USA. So now he’s playing the Seal card and breaking his oath? I believe that Henry Nicholas is a multi-billionaire. Would that have anything to do with Otten’s decision? I also find it curious that Assemblyman Todd Spitzer is working with Nicholas on a ‘victim’s rights’ bill. More strange bedfellows in the OC, eh?
Right up there w/ you Lee
This would be more of a news worthy story if a trained ex-SEAL member spilled out his guts in light of a court order. At least he did say “I mis-remebered” or “don’t recollect” what happened.
correction: at least he didn’t say,,,
You *never* talk to a grand jury. You always take the 5th
on every question.
A GJ is like the inquisition, you have no rights, no
lawyer, and what you say can be used against you.
Don’t need family or military scams, just the constitution.
Wow loyalty….. don’t see that too much anymore. Usually its all about people saving their own a$$. If this guy has been through the Seal training he can do 6 months in Jail in his sleep.
Bravo Mr. Otten, wealthy businessmen should hire SEAL !
they are trustworthy!
SEAL should be tough as jail can not keep you forever !
You have free room and board, plus medical attention,
enjoy when you can !
Hey D.K., thanks. It looks as if we silenced the ones who have never been in or around the military. Either that, or they ripped thier tin foil hats.
My Fellow Americans:
Mr. Otten’s sense of honor seems badly misplaced in this case. Military members take an oath to uphold and protect the Constitution of the United States. At the very heart of American military duty is the concept of the supremacy of civilian authority and Mr. Otten seems to be coming very close to saying that the military is not bound by to obey civilian authority.
Mr. Otten’s desire not to “snitch” is no different from the “street code” of the gang bangers and thugs. There is NOTHING honorable about covering criminal misconduct. It’s the easy way out. He’s protecting his friend - not doing his duty - and he should be mature enough to know the difference.
This is why it is almost impossible to prosecute murders in New Orleans, Baltimore, and many other urban areas, because no one will stand up and do the right thing. No one wants to do the right thing. Everyone want to cover for their friends and relatives, but from the point of view of society at large it is NEVER the right thing to do and not snithing causes literally thousands of unnecessary deaths every year in this country.
Furthermore, covering-up failures and misconduct for friends and superiors is something the military punishes harshly. After Vietnam the military spent an enormous amount of money and energy stressing the importance of honest and unbiased reporting, because they found that at times during Vietnam the platoon leader covered for his company commander, who covered or spun the operational results to make his battalion commander look better, and so on up the chain of command until by the time the information reached the Pentagon it was worse than worthless. Honesty is a military virtue and Mr. Otten’s actions are create the opposite impression.
If I was a SEAL I would be enraged for him or his attorney dragging me and my brothers in arms into this tawdry affiar. Mr. Otten may not realize it, but his behavior is disgracing his fellow SEALs. SEALs are dedicated to honor, service, and duty. That’s not always easy, but it does not include aiding and abbetting criminal activity that seems to have been intended to defraud average stockholders, like his friends, neighbors, and, yes, fellow SEALs who were Broadcom investors.
I’m sure Mr. Otten is a fine gentleman, but hopefully he will re-think his conception of honor, because is not living up to the SEALs code. He is practicing gangsters’ code and nothing else.
Let’s see, he was 28 when he got out of the “Seals”. Sounds like a real winner. When I was in the military, I don’t recall the UCMJ allowing me not to snitch.
Actually, lee, I did serve in the Air Force for 5 years.
This guy is doing a disservice to all veterans by hiding behind his SEAL service.
Whatever he’s trying to hide, it will come out in the court of law.
I forgot to add that I was in the Army for 13 years; Ranger, 82nd ABN, Master Jumper, Jump Master, Pathfinder, CIB (For combat service) etc. FYI: for all of the military pretenders out there that defend this misguided former SEAL; it your military DUTY to report an unlawful order; it is your military DUTY to refuse to carry out an unlawful order; and, it is your military DUTY to truthfully answer the questions from a lawfully convened tribunal or civilian Grand Jury. Sorry if these facts fly in the face of what you see in the movies or talk to your buddies about.
Brian, I salute you and the other real military men here for your service to your country and your moral code. The military needs another, like, 10,000 of you guys. Thank you.
Otter has taken the 5th because he has engaged in illegal criminal activity with Dr. Nicholas and expects to be compensated for his loyalty. What he doesn’t realize is that Nick has burned every “loyal” employee that he has run across. Ask Craig Gunther his ex COO who was abadoned by Nick the instance the feds inquired about the money laundering issues.