Billionaire countersues ex-aide, alleging fraud

April 29th, 2009, 12:24 pm · 13 Comments · posted by John Gittelsohn

Nicholas

Billionaire Henry T. Nicholas III filed a countersuit against a former personal assistant, who had accused him of retaliating against her for testifying before a criminal grand jury that indicted the Newport Coast tech magnate for financial fraud and distributing illegal drugs.

Katherine Nichols, who worked as a personal assistant for the co-founder of Broadcom Corp. from June 2007 to June 2008, sued her former boss in February, alleging she endured sexual harassment, physical threats, wrongful termination and unpaid overtime. Her attorney, James A. McQueen, did not immediately respond to requests for comment.

Today, Nicholas responded to his ex-assistant’s suit with a countersuit alleging she committed fraud by lying about thousands of dollars of expenses and that she conducted sexual affairs with colleagues during work hours, among other complaints.

“Ms. Nichols’ attempt to create leverage by alleging that she was terminated for testifying before a grand jury is not only inaccurate, it is preposterous,” said the 12-page complaint filed in Orange County Superior Court.

The allegation of retaliation for her grand jury testimony was significant because Nicholas’ bail terms forbid him from witness tampering. But that allegation did not appear to have caused concerns with prosecutors or the judge in Nicholas’ criminal case. In a March ruling, U.S. Magistrate Arthur Nakazato eased the terms of Nicholas’ release, allowing him more freedom to travel and removing the electronic monitoring device he had worn since his indictment last June.

Nicholas is scheduled to go on trial in February 2010 on 21 counts of accounting and securities fraud for his role in Broadcom’s improper reporting of $2.2 billion worth of employee stock options. After that trial, he faces a separate trial for distributing and using illegal and prescription drugs. Nicholas has pleaded not guilty to all the charges.

James Brosnahan, the attorney for Nicholas in the drug case and the countersuit, said he wants to make sure that his client gets a fair hearing in both the legal court and the court of public opinion.

“We’d ask people to keep an open mind about Dr. Nicholas,” Brosnahan said.

The countersuit depicts Nicholas as a victim of his assistant. It says Nicholas, after taking pity on her, paid her more than $100,000 in salary and tens of thousands of dollars in other perquisites, including subsidies for her rent and paying for her nanny. The suit says in exchange for his kindness, Nichols spent thousands of dollars in limousine fees for personal use, including travel to sexual liaisons, among other misappropriations of Nicholas’ money.

“Ms. Nichols repaid Dr. Nicholas’ generosity by stealing and/or misappropriating thousands of dollars from Dr. Nicholas and (the management company), lying to Dr. Nicholas and her co-workers and having inappropriate sexual relations with co-workers (including subordinates) and others during what were supposed to be work-hours,” the suit says.

To see a copy of the original lawsuit, CLICK HERE.

To see a copy of the countersuit, CLICK HERE.

More stories on Orange County business legal problems …

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X-DEM says:

April 29, 2009 at 5:09 pm

Hmmmm. Pot calling the kettle black. Maybe she stole some of his cocaine or, Nicholas needs to account for the missing money, somehow.

jojo says:

April 29, 2009 at 5:39 pm

X-DEM your a fool to think Dr. Nicholas has done more good for this community than your small little brain could handle…
Golnar says:

April 29, 2009 at 8:53 pm

X-Dem–you sound like a total loser. Funny how cowardly people can sit behind their computers like trolls and defame people like Dr. Nicholas because they have nothing better to do with their life.

AFriend says:

April 29, 2009 at 8:09 pm

It would take volumes of pages to review the amount of “heart and soul” that Dr. Nicholas has given to many of his employees … Time and time again, I have seen him support their professional growth, personal interests and overall well being … He has opened his world to them and allowed them to become a part of his family activities so to create a more pleasant working environment …

In return, there have been a few that have taken that sad road of “selfish greed” and personal gain … Their efforts to discredit him will only blow up when their shameless agenda is revealed and the truth is told !!

nunzia says:

April 29, 2009 at 8:13 pm

Go Get em Dr Nicholas. I’m with you all the way. Take Care…a friend

Golnar says:

April 29, 2009 at 9:25 pm

Good for Dr. Nicholas–I am delighted he is fighting back. This greedy, pathetic woman and her preposterous lies will be exposed for the world to see.

What a sad world we live in–a self-made, brilliant man, who engages in endless philanthropy, fights for crime victim’s rights, and has done more good for society than most people can dream about is targeted because of jealously and greed.

People like Ms. Nichols take advantage of his kindness and when he dares expect them to be competent at their job, they file frivolous lawsuits.

I am sure Dr. Nicholas will win, and Ms. Nichols will continue to meander through her life in mediocrity.

PK says:

April 29, 2009 at 10:18 pm

Its amazing how Dr.Nicholas’ ex-employees NEVER seem to have a problem with him as long as they are employees. But as soon as He dismisses them for legitimate reasons they suddenly have all kinds of accusations to hit him with. Kathy was not an employee during the time Dr.Nicholas was with Broadcom, I highly doubt anything she had to tell the feds, was worth Dr. Nicholas tampering with her as a witness. He is certainly not going to risk his freedom to bother with her, As evidenced by court records he has met all court requirements. People want the juicy story about the drug crazed billionaire. Sorry, that’s just not the case. He is living a quiet life, building a wonderful relationship with his kids. He is a philanthropist and a champion for Victims Rights ..Unfortnately his good deeds, do not get the headlines that the bad he is accused of get. I am afraid that Kathy is Just another greedy ex-employee going after deep pockets. I am happy to see Dr. Nicholas fighting back with a countersuit., I’ll bet she didnt see that coming. Its unfortunate that some people, feel an entitlement to money, that Dr. Nicholas worked very hard and sacraficed much to earn.

jojo says:

April 29, 2009 at 10:42 pm

X-DEM, just imagine, I have never met Dr. Nicholas but I have heard many “GREAT ” stories about him. I stand by Golnar and AFriend, standing up for this wonderful Dr. that has done nothing but give back to this world we live…

Dr. Nicholas will be on top of his game with the help and prayers of the community and friends.

Go fight win Dr. Nicholas!

HW says:

April 30, 2009 at 8:32 am

It always seems that when these stories first come out, we get only one side, usually punched up by a lawyer who sees dollar signs from someone with deep pockets.

But, time after time, it turns out that there is another side that gets little notice until days or weeks later.

How often are we going to let decent people get dragged through the mud so that greedy people can try to get a big payout? And why does the press keep covering these stories as though theya re breaking news, instead of getting all the facts before they print, like they used to.

These stories make me sad.

JimDandy says:

May 1, 2009 at 10:55 am

Now the foundation is laid…and all that is left is to go to court…seems like both parties are pretty determined to win.

You all can say what you will…I personally can’t wait until Kat’s attorney gets Nick on the stand…and Kim for that matter….and you will all see what you can’t now…

He made the new rules…now he is going to have to play by them….what do you think the chances are he “wont take the stand” to defend himself?

I put this at 0%, why…because that’s where it ALL will come out…everything that everyone needs to know …..can you imagine if he took the stand…not only every major newspaper…but I think the FBI and a few others will be front row center for THIS testimony!!!

He was a great employer huh? how many people do you know treat others well before going to rehab…such as Nick and Kim? Yeah they must of been model citizens right before going into rehab…

This is going to be great!!!

Golnar says:

May 1, 2009 at 1:47 pm

JimDandy aka loser with no life: first, I highly suggest a “Hooked on Phonics” tape. Your grammer is atrocious, and you lack the ability to put together simple sentences in English–seriously, “must of been”? I guess you mean “must have been”–boy, now I see why you are so jealous of Kim (law review member who obtained her law doctorate cum laude) and Dr. Nick–one of the most successful people in the history of our country.

It sounds like you could use some of the “fancy book learnin’” instead of cowering behind your computer wishing other people ill like the sad and sorry coward you are.

Deborah Vicari says:

May 1, 2009 at 11:23 am

Dr. Nicholas has done amazing things in the OC and elsewhere. His life is only escalated to front page and national news due to his level of financial success and people seem to love to see giants fall. This is our sickness, try seeing him as a man not anything else. That is all he is and one with an incredible heart at that trying to help others in the fields of medicine, education, and in victim’s rights. This last week I have seen Dr. Nicholas say in a speech that he had made a promise to his dad on his death bed that he would continue his fight to work to expand victim’s rights beyond just California so all victims can be helped. His sister was murdered and so was mine. This kind of event changes a person. He could have made his money and forgoten where he came from. I have met him on many occasions and had the pleasure of spending time with him. View him as a man, not as what the media has conjured up. Listen when the facts are laid out, not when the hype is being stirred up in the media for entertainment purposes. You will then know what I know and I believe you too will stand behind this very good man that is a class act and one that is highly needed in our society. Stand strong Nick.We are very proud of you for all you are doing this week and beyond. You really do make us proud! It is hard enough to survive what we have gone through none the less become what you have become and then do what you have done with it. I commend you and thank you Nick. And if people cannot see this, they are simply not familiar with the facts. We stand behind you Dr.Nicholas. Thank you for standing behind us and behind victim’s rights.

lilredme2000 says:

May 20, 2009 at 5:25 pm

I wonder how much it cost Nicholas to get all these positive comments posted?
Or now that he (unjustly) has ‘more freedom’ he is doing it himself.

Just because he is a great advocate of victims rights doesn’t mean he is above the law or incapable of possibly doing the many other things he is accused of.
Yes Dr Nick is ’successful’ at the expense of others. Good job. Apparently a great husband too by all accounts.

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