Former head of KB Home is convicted of mail fraud

Bruce Karatz found guilty on stock option backdating charges
The former head of KB Home is convicted of mail fraud and making false statements. Jurors acquit him of 16 other charges.


By Stuart Pfeifer, Los Angeles Times
April 21, 2010 | 11:51 a.m.

The former KB Home chief is convicted on charges of mail fraud and making false statements.

Bruce Karatz, who helped turn KB Home into one of the nation's most successful home-building companies during two decades as its chief executive, was convicted Wednesday on four felony charges related to stock option backdating.

A federal court jury in Los Angeles convicted Karatz of two counts of mail fraud, making false statement in public filings with the Securities and Exchange Commission and making false statements to accountants of a publicly traded company. The panel acquitted Karatz of 16 other charges.

Karatz, 64, had faced 20 felony charges related to the backdating of stock options at the Westwood-based home-building company he ran from 1986 to 2006.

more

http://www.latimes.com/business/la-fi-karatz-20100422,0,4460787.story

If he was Black and caught with crack he would do far more time. my bet is 5 months (out for good behavior) and a fine.

After all, he was probably under a lot of pressure from ACORN and po' folks who didn't qualify for mortgages. And all that money he received for his scamming ways? Just a coincidence that it all landed in his pocket. The real villains go scot free!

Or are we allowed to call criminals and frauds criminals and frauds, even if their crimes paid large? Is someone a success if they have to commit crimes for that reward?