"The backdating scheme at Broadcom went on for five years, involved dozens of option grants," Linda Chatman Thomsen, director of the SEC's enforcement division, said in a statement.
"The scope and magnitude of the fraud warrants the significant penalty imposed on the company." The agency accused Broadcom of using the backdated options to recruit and retain the most highly qualified staff without paying them higher salaries.
In a settlement reached, SEC sources stated that Tullos had agreed to a $1.3 million payout to resolve the allegations against her.
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To resolve the case, the company consented to the entry of an injunction prohibiting future violations of the antifraud, books and records and proxy provisions of the federal securities laws.