charges that it falsified its books, and has had to set up a special litigation committee to deal with all of the shareholder lawsuits coming its way. Cliffside Malibu is a drug rehabilitation center in Malibu, California. A cliffside Malibu estate that once belonged to the supermodel has just been listed for $99.5 million, one of the highest-priced homes in the state. I have never seen a physician who is only a counselor, Lira said. Less than two months after the funeral, on June 5, the Justice Department unsealed not one but two federal indictments. Thats what Kelly Logan learned when he sought treatment for a methamphetamine addiction at Promises Malibu, detox destination to the stars. Two doctors, Robert Waldman and M. David Lewis, have been listed as staff internist and psychiatrist, respectively, and sometimes addictionologist, on the websites of at least three of the 11 centers that run rehab houses in the Malibu area. As prosecutor Andrew Stolper put it, Nicholas was not in the business of making a living by dealing drugs. I would see him usually carefully measure the dosage. I had to look the other way when Nicholas secretly spiked clients, prospective clients and third parties drinks with illegal drugs., Mehrdad Nayebithe engineer who was granted the stock optionscontended in a draft lawsuit in late 2000 that Nicholas also had a practice of hiring prostitutes to greet visiting customers, other business associates, and for himself. Nicholas called the prostitutes professional saleswomen, says another person who did business with Broadcom. Nicholas grew frustrated with the slow pace of the secret construction, and he took Stacey to Hawaii for a weeks vacation. On the way home, Ipsen introduced Nicholas to a woman named Shari Martin, whose son had been murdered, and who was starting her own chapter of a group for relatives of homicide victims. Broadcom's shareholders never knew. The tunnel, says Butler, had a coolness factor: the faux stone walls had impressions of skulls carved into niches, which were lit by candelabras. They take care of our clients, Moorman said. Nicholas also bought toys, among them a Harley-Davidson and a black Lamborghini Diablo. In an indictment for drug trafficking, the government paints a picture of a drug fiend who hired prostitutes for himself and his customers, used cocaine, methamphetamines, Ecstasy, prescription painkillers, and moreand spiked the drinks of other technology executives without their knowledge. At one point, a slender woman wearing a sports bra walks in. Cliffside Malibu CEO and founder Richard Taite has lived in the Los Angeles area his entire life. COVID update: Cliffside Malibu has updated their hours and services. Among other awards, Nicholas has received the Ronald Reagan Award for Pioneering Achievement in Criminal Justice. 2:16-cv-07312 in the California Central District Court. Marcella and Robert Leach, along with the late Ellen Griffin Dunne, ex-wife of Vanity Fair special correspondent Dominick Dunne and mother of Dominique Dunne, also killed by an ex-boyfriend, founded Justice for Homicide Victims, which fights for victims rights. (He threatened to commit suicide, then shot her in the head when she tried to stop him.) During Nicholass years at U.C.L.A., his family suffered a tragic loss. Leach was a screenwriter and teacher who was best known for his scripts for the television series Perry Mason. A story began to make the rounds that, during a meeting with a major investor, he had a nosebleedwhich was interpreted as a symptom of a cocaine habit. In the fall of 2002, a group of seven contractors who had worked on the project, including James, hired a lawyer to draft a lawsuit against Nicholas. In June 2006, Broadcom announced that it had received an informal inquiry into its stock-option practices from the Securities and Exchange Commission. Before the party, according to one pal, Nicholas bragged that nine different women he was datingnone of whom knew about the otherswere coming. John Peloquin, president of Discovery Behavioral Health, which purchased Cliffside from Taite in 2018, said the rehab is "under new management and the former owner is no longer affiliated with our organization.") @LAMag. The 42 Best Romantic Comedies of All Time, The 25 Best Shows on Netflix to Watch Right Now, King Charles Reportedly Began Evicting Meghan and Harry the Day After, How Screwed Are Donald Trump and His Adult Children, and Other Questions You Might Have About the Staggering Fraud Lawsuit Against Them. When Nicholas was at TRW, he met Stacey Feller, a fellow electrical engineer five years younger than he. In August 2000, they said, Nicholas decided, unbeknownst to his wife, to expand the tunnel into a secret and convenient lair in which he could indulge his appetite for illegal drugs and sex with prostitutes.. ), Nicholass company was also slipping by this timebadly. Prosecutors got wind of another suspicious incident that occurred in the fall of 2007. Cliffside Malibu is part of the Discovery Behavioral Health family of brands. Nayebi e-mailed Nancy Tullos, Broadcoms vice president of human resources, to complain, saying that the lower price had been a major key deciding factor in his decision to accept a job at Broadcom. Says one former executive, Could he have done what he did without the insanity? Addiction researchers say the boasts are virtually impossible to substantiate. One person who worked with Nicholas says that he slept three or four hours a night, max. Wed have to buy him Saline by the case to rinse his nose out.. And more! Vanity Fair may earn a portion of sales from products that are purchased through our site as part of our Affiliate Partnerships with retailers. What secrets can lurk beneath the smooth faade of a successful corporation? In fact, that August, prosecutors charged him with a somewhat obscure crime: avoiding currency-reporting regulations that require a bank to file a report when more than $10,000 is withdrawn from an accountin this case, by repeatedly cashing checks to Nicholass account for just under the limit. And while Butler says it was an innocent spothe describes it as a symbiosis between spirituality and technologyothers view it a little differently. Promises has denied the allegations. Addiction researchers have criticized Passages for saying that it cures patients. Fabulous materials and artifacts cover every square inch: brocade from Spain, lustrous red velvets, arches carved in India, statues of Buddha and Shiva, Persian rugs. Effective today I have resigned as president and C.E.O. A few years later, on September 25, 2007, Nicholas flew his private jet to Soledad for the parole hearing of Kerry Michael Conley, who was convicted in 1985 of the murder of Marsalee. The legal problems also reflect how the Malibu properties -- the area has one of the densest concentrations of rehab retreats in the nation, experts say -- can differ from industry norms, as represented by the Betty Ford Center, Hazelden, Phoenix House and other leaders in addiction treatment. As Passages Malibu and Cliffside Malibu go head to head, it's a showdown on the Rehab Riviera. Nicholas began donating to political campaignshe has been one of Arnold Schwarzeneggers top donors. Clustering is not the norm.. (Nicholas, who was more interested in business, was finally granted his Ph.D. from U.C.L.A. Youll have a trusted professional on whom you can confide and rely throughout your treatment program. I immediately felt comfortable and happy with the staff. We didnt close down because we were running a substandard treatment center, he said. The arraignment of Henry Nicholas on criminal charges wasnt the first time he burst onto the scene in a blaze of publicity. The problem is that because they have an agenda, they are often better with you than your real friends, who dont know how to act with you anymore., But that was later, and for a short period it was all just a party. The Orange County Register reported that the average Broadcom employee was worth $5.81 million! Palace Insiders Say Prince William Is Already Furious About Prince Harrys Memoir Leaks, Prince Harry alleges Prince William attacked him over Meghan Markle in a new excerpt from. Our philosophy is simple and our unique addiction treatment approach puts Cliffside in a class of its own. Imagine what America could be like if Broadcom, Apple, and the other 250 companies now accused of backdating options didnt exist? Promises denied the allegations. that when she began working for him, in 1998, he was controlling and detail-oriented, and required her to work long and intense hours, but was otherwise normal. The stock more than doubled, and by the end of the trading day, Nicholas and his co-founder, a quiet man five years his senior named Dr. Henry Samueli, also an electrical-engineering Ph.D., were each worth $600 million. They did so by choosing a day in the past at which the stock had closed at a lower price than the grant date. I was treated at Hazelden -- I was there for three days -- and they charged me to the penny for those three days, said Masterson, 48, who runs a sobriety house for women in Huntington Beach. 2023 Cond Nast. One investor remembers going to a meeting there around nine a.m. The accommodations, food, and amenities were amazing. If the allegations are true, the saga of Dr. Henry Nicholas is sex and scandal writ large. Truly secluded, the mansion sits behind gates on over three acres of manicured grounds above Malibu's El Sol Beach. His imperious manner led some Wall Street analysts to call him Czar Nicholas., Nicholas told others at Broadcom that he was a rare personality type that some psychologists call the Mastermind. (The Myers-Briggs and Keirsey personality tests, which are big in M.B.A. circles, group people into 16 different personality types, to which Keirsey gives labels, such as the Healer and the Inspector; Masterminds make up just 1 percent of the population.) Theres a twist to Nicholass story, according to some of the allegations against him, that makes it something darker than a tale of a man whose personal eccentricities got the better of him. When a Los Angeles Times reporter called Nicholas about the neighbors complaints, he explained he was building a pump house to deal with water overflow along the horse trail. That is, says the government, consistent with someone purchasing substantial quantities of narcotics. Indeed, from early 2006 to early 2007, one employee wrote 129 checks on Nicholass account, payable to cash, for a cumulative $689,685.42. In 2004, the state cited Promises for providing medical services, administering TB tests and having doctors conduct physical exams at its Westside location, all of which it was not licensed to do, records show. Working for Cliffside Malibu has been a great experience. Nicholas accused Stacey of hiring his people and requested that she not waste the assets of their joint trust. Nicholas, he said, was a very powerful man, and he feared retribution. You can email the site owner to let them know you were blocked. It aint real. Nicholass friend didnt mean that the money itself wasnt real, but rather that it could give life a dangerous aura of unreality. Its the other set of charges, though, that makes Nicholass story into something morequite a bit morethan another entry in the annals of white-collar crime. We were having economic problems.. A cure? Irvine schools of engineering. . LAMAG.COM NEWSLETTERS Be an L.A. Insider. In November 1983, Marsalee was murdered by an ex-boyfriend, who had been stalking her. Stacey returned home, too. Do Not Sell or Share My Personal Information, Desperate mountain residents trapped by snow beg for help; We are coming, sheriff says, Newsom, IRS give Californians until October to file tax returns, Californias snowpack is approaching an all-time record, with more on the way. Similarly, physicians are permitted to serve as counselors at rehab centers, but even in that role, they must refrain from practicing medicine as staff members, said Rebecca Lira, deputy director of licensing and certification for the alcohol and drug department. The dot-com bubble had burst in 2000, and what Nicholas later called the worst downturn in semiconductor history was well under way. No one is losing any money, he said. We also know the importance of creating a distinctive and unique personal experience for you right from the start. Our evidence-based approach includes combining medicated- assisted detox (if necessary), intensive one-on-one therapy, group sessions, physical activity, nutritional support and many other effective proven modalities. When Henry was four, his parents separated, and Marcella eventually decamped for Santa Monica with him and his younger sister, Marsalee. And if its theft, then by one measure, there is no company in America whose executives allegedly stole on as grand a scale as Broadcom did. She grew up in Los Angeles, and people who know her describe her as very nicethe same words people use to describe Henry Samueli. The man is a genius, but he comes down to our level, she says. Passages says on its website that it has the highest cure rate in the country and is renowned as the most successful alcohol rehab and drug treatment center in the world for many reasons.. Welcome to Cliffside Malibu! Nicholas also developed a reputation for extreme arrogance. Broadcom lost money in 2000, 2001, and 2002. Theyre scam artists, said Garfield Logan, a plaintiff in one of four consumer-rights, breach-of-contract and unfair-business-practice lawsuits filed against Promises Malibu and its Westside branch in the last year. Logans brother, Garfield, says he paid $42,000 up front to admit the former professional surfer for a month at Promises canyon-top Mediterranean-style home. 96% of Cliffside Malibu patients say they are a better person after treatment. Nicholas settled the complaint for roughly $3 million, says one person. Its stock priceas high as $182.42 on August 24, 2000began to plummet and eventually hit a low of $6.47 on October 7, 2002. Without my treatment team, its pretty obvious I would not have much to live for today. Non-12-Step Approaches to Addiction Treatment Through treatment or word-of-mouth, you have likely heard of the 12-Step program for addiction treatment. Not to be outdone, Promises declares on its website that it is designed for anyone wanting the finest rehab program in the world.. You could describe my approach as scorched earth, Nicholas told a reporter in 2000. Promises lawyer Gerald Sauer said that when patients leave early, the balance of the months payment is retained for their use if they check back in, or the money is sometimes transferred to other rehab centers where the patients seek treatment. Grant said Harmony now strictly adheres to the state rules and that Waldman and Lewis are part of the centers ancillary staff., They are not paid by us, he said. And, finally, what is it about human nature? Until recently, the Promises website said the center had a medical staff led by Jack Kuo, director of psychiatry; and Robert Saltzman, medical director. From the second your call is answered by our Admission counselors you will know that you have made the right choice. I was on heroin, she said. In the last six years, Prentiss said, only seven patients have departed early and failed to complete treatment later. It was at the Pond that Stacey caught Nicholas, according to the contractors. Nicholas took time off in December and January before finally announcing his departure in late January. Fisher, of the state agency, said Promises stopped the practice as a result. He was in the business of using drugs for his business. Kenji Kato, who helped organize events for Broadcom, also alleged in his lawsuit that he would see Nicholas put powdered ecstasy pills into the drinks of his customers. Imagine, if you will, a secret warren of rooms filled with any amenity you could ask forfrom top-of-the-line sound equipment to a Jacuzzidecorated in an extravagant style that could be described as Harem Fantasy Gone Wild. Popular countries . These were the days when technology stocks only went up, and some six months later, Nicholas called a venture-capitalist friend. The suit accuses Promises of evicting the plaintiff after a week -- and keeping the balance of his $49,000 payment -- because of false claims that he had made a sexually inappropriate remark to an unnamed celebrity patient.