A federal jury on Wednesday found the former chief executive officer of KB Home guilty of depriving shareholders of his honest services and lying about backdating to outside auditors and the U.S. Securities and Exchange Commission. Prosecutors had alleged that backdated stock options helped Karatz personally pocket more than $6.5 million between 1999 and 2005, when he resigned from KB Home. The jury deliberated for seven days before reaching its verdict. Karatz faces up to 80 years in prison.
Ex-KB Home CEO Convicted on 4 Counts in Backdating Trial
The National Law Journal
April 22, 2010