Closing arguments under way in stock backdating trial of ex-KB Home chief in LA

Closing arguments under way in KB Home exec trial

LOS ANGELES — Closing arguments are under way in the federal trial of former KB Home CEO Bruce Karatz on stock backdating charges.

His attorney John Keker told jurors Friday that prosecutors had not proven guilt. Prosecutors were expected to address jurors later in the day.

They claim Karatz made more than $6 million from illegal backdating at the homebuilding firm.

Karatz is accused of retroactively dating his purchase of company stock to a time when the share price was low, then selling it at a profit. That’s not illegal if it’s disclosed to investors. Prosecutors claim Karatz tried to conceal it.

He has pleaded not guilty to 20 felony charges.