Government Highlights Personal Gain as KB Home Stock Options Backdating Trial Opens
KB Home's former CEO "secretly padded his pay" by about $11 million when he backdated his own stock options without the knowledge of others at the company, including its in-house lawyers, a federal prosecutor alleged during opening statements in the criminal trial against Bruce Karatz. "He was the one who stood to benefit the most from the backdating," Assistant U.S. Attorney Alex Bustamante said. Karatz's attorney said that no one at the company, including Karatz, thought they were doing anything improper or illegal.
