Kb homes and backdating
A stock option allows an employee to purchase a company’s stock at a preset price at a future date.Karatz retroactively tied the exercise price of his options to dates when the stock was selling for a low price, which increased his profit when he sold the shares.Prosecutors had asked for a term of at least six years in prison.
He remains free on bond and faces up to 80 years in prison when he is sentenced Sept. Defense attorney John Keker said he was disappointed at the four convictions despite his client’s acquittal on the other charges. Last year, a federal judge in Orange County threw out similar cases against Broadcom co-founders Henry Samueli and Henry T. District Judge Otis Wright refused to allow Karatz’s attorneys to pursue similar misconduct claims, saying he found no evidence of wrongdoing.
“We have real things to deal with.” The feud between Mezger and his neighbors goes beyond the encounter on Saturday.
Since moving into their home a year ago, Griffin and Bick have filed several noise complaints against Mezger, Huff Po reports.
Same was true in October 2009 when the company first announced in its quarterly report that the staff of the SEC notified the company that a formal order of investigation had been issued regarding possible accounting and disclosure issues. In April, former chief executive officer Bruce Karatz was convicted by a federal jury of four felony counts, including two counts of mail fraud, one count of lying to company accountants and one count of making false statements in reports to the Securities and Exchange Commission. In September 2008, Karatz agreed to pay .2 million to settle civil charges for his role in the stock-option backdating scheme that benefitted himself and other KB Home officers and employees.
At the time, it stressed that the probe should not be construed as an indication by the SEC that there has been any violation of the federal securities laws. Last November, a Texas homeowner filed a class-action lawsuit today against KB Home, Countrywide Financial and Land Safe Appraisal Services, claiming the three conspired to rig housing prices in Texas and Colorado, costing home purchasers millions of dollars and pushing homeowners into dangerous loans.
KB Home did not immediately respond to , the publicly-traded company said Mezger had apologized to Griffin and that he regrets “losing his temper and the language he used.” “It does not reflect who he is or what he believes,” the statement said.