The Los Angeles Times reported Saturday Nicholas, 48, is in the midst of a nasty divorce and has been identified as "a potential unindicted co-conspirator" in a federal investigation probing the illegal backdating of Broadcom stock options.

Nicholas attorney Bill Hake said in a statement his client's treatment was prompted by the recent death of his stepfather, Robert Warnes Leach.

"The death of a beloved parent can be devastating to anyone," Hake said in a statement released this week. "For Nick it triggered a period of intense self-reflection and recognition that he has been drinking too heavily."

Federal authorities are investigating Nicholas' role in the manipulation of stock option grants at Broadcom, the Irvine, Calif.-based computer chip maker he co-founded and led until 2003.

The billionaire has denied any wrongdoing, the newspaper reported.