Skip to main content

Broadcom Executive Fired Today For Phony Credentials, While Microsemi Executive Remains Under Scrutiny

Broadcom Executive Vahid Manian Fired

Broadcom Corp. (NASDAQ: BRCM) fired Senior Vice President Vahid Manian after a background report issued by Barry Minkow, co-founder of the Fraud Discovery Institute, uncovered him using phony educational credentials in filings with the Securities and Exchange Commission. Broadcom simply issued a terse one-sentence statement saying:

On December 3, 2008, the employment of Vahid Manian, Senior Vice President, Global Manufacturing Operations of Broadcom Corporation and an officer and/or director of various Broadcom subsidiaries, was terminated. A search has commenced to find his successor.

Broadcom could have at least thanked my dear friend Barry Minkow for uncovering lies by its Senior Vice President that the company was incapable of finding. No surprise in their lack of gratitude.

In my last blog post, I detailed how a background check by Minkow exposed that Broadcom Corp. Senior Vice President and STEC Inc. Board Member Vahid Manian did not receive a “B.S.E.E and an M.B.A from the University of California, Irvine” as claimed in a Broadcom proxy filing and an STEC proxy filing with the SEC.

So far, STEC (NASDAQ: STEC) has issued no statement about Manian’s status as a Director of that company. Marian also serves on STEC's audit, compensation, and nominating committees.

Microsemi Executive James J. Peterson "Categorically Denies" Falsifying Credentials, While Brigham Young Spokeswoman Reaffirms Findings in Minkow Report

In another press release issued today, Microsemi Corporation (NASDAQ: MSCC) President and CEO James J. Peterson categorically denied “published reports that he has misrepresented his degrees from Brigham Young University.”

According to another background check by Minkow, Microsemi Chief Executive Officer and STEC Board Member James Peterson did not receive a "B.A. in business administration and an M.B.A. from Brigham Young University" as claimed in STEC's proxy filing with the SEC.

According to that press release, Peterson said:

I am working directly with the University to clarify this situation. It appears that the background check there may have mistakenly been made with the name 'James J. Patterson,' not mine, as stated in a Seeking Alpha report.

Peterson probably read my earlier blog post this morning that was syndicated on Seeking Alpha. While I correctly spelled his last name several times, I misspelled his last name once in a paragraph towards the end of that post.

However, the background check by Minkow was done under the name "James J. Peterson" and not "James J. Patterson," as suggested by Peterson. In addition, the birthday and social security number (redacted from the report) is clearly Peterson's and does not belong to anyone else.

In Microsemi's press release, Peterson was also quoted as saying:

I have every reason to expect that Brigham Young will investigate this allegation shortly and officially confirm my degrees.

However, Bloomberg News went back and re-interviewed Brigham Young spokeswomen Carri Jenkins after Peterson's statements, above, denying that he falsified his educational credentials:

Brigham Young spokeswoman Jenkins said in an interview after the statement that she checked degree records again and couldn’t find any record of a degree for Peterson. She said she had been checking the right name.

“We are always very careful when we release this kind of information,” she said.

Note: Bold print and italics added by me.

Therefore, Brigham Young spokesperson Carri Jenkins reaffirmed background reports by Barry Minkow and his Fraud Discovery Institute that Peterson falsified his educational credentials.

Both Executives Also Serve on Board of Directors of STEC Inc.

Both Vahid Manian and James J. Peterson also serve on the board of directors, audit, compensation, and nominating committees of STEC Inc. As detailed above, while Broadcom fired Manian, STEC has taken no action, to date, to remove him from its board.

Worst yet, two of six board members of STEC Inc. and two of four members of its audit, compensation, and nominating committees used phony credentials in SEC filings, according to the Fraud Discovery Institute background reports.

According to today's Bloomberg article, "Peterson said he had vetted and hired Manian when the two worked for Silicon Systems Inc." Both Peterson and Manion worked at Silicon Systems in the mid-1990s.

As a minimum, Peterson failed to adequately vet the credentials of his long-time pal Manian, who lied to him about his educational background for several years. Is it possible that Peterson colluded with Manian to cover-up Manion's false educational background? Is it possible that they both colluded with each other to lie about both of their respective backgrounds?

To be continued....

Written by:

Sam E. Antar (former Crazy Eddie CFO and a convicted felon)

Disclosure:

I am not short or long any of the companies named in this blog post. However, the Fraud Discovery Institute and/or Barry Minkow may have a short position in the companies mentioned in this blog post. Please read the Full Disclaimer on FDI for Profit Status.

Over a year ago, I provided funds to Fraud Discovery Institute (FDI) to help pay costs of its investigations, though I had no control over any monies spent. I am not an owner, manager, employee, or consultant of Minkow or FDI and I have not received any compensation from them.

Comments

Popular Posts

Did a Clever SEC Bait Goldman Sachs into Compounding Its Legal Problems With the "Kiss of Death" Message?

Updated: At 3:48 AM ET 04/20/2010 on bottom

The Kiss of Death

In filing its lawsuit against Goldman Sachs (NYSE: GS) on a Friday, the Securities and Exchange Commission sent what I call the "kiss of death" message to the embattled company. In other words, the SEC wanted to stick it to Goldman Sachs and Fabrice Tourre, the Executive Director of Goldman Sachs International, who is also a defendant in the complaint. While the SEC as a practice does inform target companies and individuals of an impending enforcement action, it does not always tell them exactly when such an action will be filed.

Apparently, the SEC filed its lawsuit without giving Goldman Sachs the heads up that it was planning to file it that day. Business Insider observed that Goldman Sachs was clearly unprepared to respond to the complaint as news of the lawsuit dominated the headlines all day. Goldman issued a short denial around noon and issued an extensive denial late in the afternoon, after most people had …

Overstock.com CEO Patrick Byrne Sleeps With a Gun

In numerous blog posts in the past, and in widespread media coverage, evidence has accumulated for years that Overstock.com CEO (NASDAQ: OSTK) Patrick Byrne has shown signs of being mentally unbalanced and paranoid.

Byrne has blamed his company's financial woes on an unnamed "Sith Lord." He hired paid goons to stalk his real and imagined adversaries and to write lengthy conspiracy theories on the Internet. Byrne has close ties with Bo Gritz. The Anti-Defamation League lists Bo Gritz as a far-right extremist with “extensive connections to both white supremacists and anti-government groups and leaders.”

Patrick Byrne's infamous temper tantrums when he doesn’t get want he wants are well documented too. He made obscene and misogynistic comments to a female reporter. He suggested that she gave “blowjobs” to Goldman Sachs traders. He suggested that a male reporter “Sucks It Likes He’s Paying the Rent.” An independent research analyst was told that “You deserve to be whippe…

Nature's Sunshine Products, Willbros Group, Cal Dive International, and BSQUARE Violate S.E.C. Rules on Calculating EBITDA

Nature’s Sunshine Products (NASDAQ: NATR), Willbros Group (NYSE: WG), Cal Dive International (NYSE: DVR), and BSQUARE (NASDAQ: BSQR) have recently issued earnings reports which include a calculation of EBITDA (earnings before interest, taxes, depreciation, and amortization) that apparently does not comply with Securities and Exchange Commission interpretations for Regulation G governing such non-GAAP financial measures. In each case, their erroneous EBITDA calculations have enabled them to significantly distort their financial performance by erroneously reporting a positive EBITDA, when they should have reported a negative EBITDA in the latest quarter.

How EBITDA is supposed to be calculated under Regulation G

According to the S.E.C. Compliance & Disclosure Interpretations, EBITDA is defined under Regulation G as net income (not operating income) before net interest, taxes, depreciation, and amortization. See below:

Question 103.01Question: Exchange Act Release No. 47226 describes E…

InterOil, John Thomas Financial, and Clarion Finanz: Anatomy of a Stock Market Manipulation Scheme

In this blog post, I will provide evidence of what I believe is a stock market manipulation scheme involving InterOil (NYSE: IOC), John Thomas Financial, and Clarion Finanz AG. I believe that InterOil with the assistance of Clarion Finanz concealed John Thomas Financial’s involvement in helping it raise $95 million through a private placement of convertible debt securities.

Clarion Finanz acted as a buffer between InterOil and John Thomas Financial to help InterOil hide John Thomas Financial's role in raising funds. Afterwards, InterOil filed false and misleading reports with the Securities and Exchange Commission in an effort to conceal John Thomas Financial’s role in helping the company raise $95 million in convertible debt.

Carl Caserta, who in 1991 was barred by the Securities and Exchange Commission from “association with any broker, dealer, or investment advisor” played a role in helping InterOil use John Thomas Financial to obtain funds from investors. InterOil, John Thoma…

Class Action Complaint against Amedisys uses Sarbanes-Oxley Act Corporate Governance Provisions to Battle Alleged Corporate Malfeasance

Updated at bottom of article

Last week, Pomerantz Haudek Grossman & Gross LLP filed a class action lawsuit against Amedisys (NASDAQ: AMED) charging the company, its CEO William F. Borne and its CFO Dale E. Redman with securities fraud.  In the next few days, Bernstein Liebhard LLP and Finkelstein Thompson LLP filed similar class action lawsuits against the company. The lawsuits allege that Amedisys abused Medicare's reimbursement system for at-home therapy care based on a compelling analysis of company revenues in an April 27 Wall Street Journal article.

In addition, the lawsuits innovatively utilize a provision under Section 406 of the Sarbanes-Oxley Act 2002 which provides a back-door way for investors to force ethical corporate governance and sue public companies for malfeasance. That provision requires Senior Financial Officers, such as the CEO and CFO of public companies, to abide by a strict code of ethics which broadly defines corporate malfeasance and effectively makes…