LA jury to start deliberating in KB Home stock backdating trial
By APFriday, April 9, 2010
KB Home backdating trial goes to LA jury
LOS ANGELES — A Los Angeles jury is set to deliberate the fate of the former KB Home chief accused of illegally backdating stock options that earned him more than $6 million.
Closing arguments in Bruce Karatz’s trial ended Friday morning in a Los Angeles federal courtroom. Jurors are awaiting the judge’s instructions before beginning deliberations.
The 64-year-old former chairman and CEO of the homebuilding firm has pleaded not guilty to 20 felony charges.
Karatz retroactively listed his KB Home stock purchases as having occurred on dates when the price was low — allowing him to sell at a higher profit. Prosecutors claim the backdating was illegally concealed from shareholders.
His attorney says Karatz thought he was following proper procedures and prosecutors haven’t proven his guilt.
THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.
LOS ANGELES (AP) — 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.
