Kb Home Exec Pleads Not Guilty In Stock-option Scandal

Bruce Karatz, chief executive of the home-building company, is accused of backdating stock options for a personal profit of $7 million. If convicted on all 20 charges, he could face life in prison. Former KB Home Chief Executive Bruce Karatz pleaded not guilty in federal court this morning to charges that he secretly backdated stock options to enrich himself, then concealed the scheme from regulators and investors.

 

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