UPDATE 2-Broadcom paying $12 mln to settle SEC charges

(Adds comment from Broadcom)

WASHINGTON, April 22 (Reuters) - Broadcom Corp (BRCM.O) has agreed to pay $12 million to settle U.S. Securities and Exchange Commission charges that it fraudulently backdated stock options.

The chip maker did not admit to or deny the SEC allegations that it falsified its reported income by backdating stock option grants over a five-year period, the SEC said on Tuesday in a statement.

From June 1998 to May 2003, Broadcom misrepresented the dates on which stock options were granted to executives and employees, according to the SEC's complaint.

The scheme resulted in Broadcom having to restate its financial results in January 2007 to report an additional $2.22 billion in compensation expenses.

"The backdating scheme at Broadcom went on for five years, involved dozens of option grants, and resulted in the largest accounting restatement to date arising from stock option backdating," said Linda Chatman Thomsen, the SEC's director of enforcement.

"The scope and magnitude of the fraud warrants the significant penalty imposed on the company," Thomsen said.

Broadcom said it was pleased that the SEC's investigation had concluded.

"This is a major step in the process of closing this chapter as we remain focused on the company's business today and for the future," Broadcom spokesman Bill Blanning said. (Reporting by Rachelle Younglai; Editing by Tim Dobbyn)