Former KB Home CEO Bruce Karatz Escapes Jail Sentence

Bruce Karatz, former CEO of KB Home (KBH), was fined $1 million and given five years of probation for hiding backdated stock options from auditors and regulators.

Karatz will face no jail time but will serve eight months of home detention with electronic monitoring and perform 2,000 hours of community services, Bloomberg News said. U.S. District Judge Otis D. Wright II said the sentence was in keeping with federal guidelines and his own past record of not doling out prison time to defendants with no criminal record or history of violence.

Wright said he "lost a lot of sleep over the right thing to do in this case."

Karatz, 65, was convicted of two counts of mail fraud and two counts of making a false statements. The charges related to his actions during an internal investigation of backdated options in 2006.

In court papers filed Oct. 14, prosecutors said that sentencing Karatz to home detention in his 24-room house in California would imply that there is a two tier-justice system that lets wealthy, well-connected executives break the law with virtual impunity.

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akbhomesucks@activist.com

This ruling letting Bruce Karatz off the hook signals the return of the CARPETBAGGER! Go for it boys it’s a free for all for white collar crime. Were not going to see the downfall of Boss Tweed Karatz, the powerful Tammany Hall leader in this lifetime they just changed names, and suits and now are reborn on the Board of Directors of KB Home along with fellow character witnesses and other corporations with a license to steal. Tammany corruption (KB Home) has the seal of approval it’s the Justice Department or DOJ. After all "W" appointed Judge Wright to this position, is there anymore to say? Here's an image of the seal of approval: http://tinyurl.com/25s39xu I understand Karatz had it encrusted in jewels and it's embedded on his throne in Bel Air! Let the pillaging begin (Louis-Auguste KARATZ aka King Bruce Louis XVI) & (Maria Antonia Josepha Johanna Lilly TARTIKOFF-KARATZ). If the HomeDepot is reading this it maybe a good idea to put pitchforks on sale so your share price can go up and the Board can exercise those stock options. Congratulations Bruce you are KING of CORRUPTION and got away with it. Too bad the health announcement comes next? Since crooks are always leveled by the Universe. Bruce won the battle but lost the war.

November 11 2010 at 6:05 PM Report abuse rate up rate down Reply
blyons7009

Its interesting that Martha Stewart served prison time, for messing with stocks. Must be a man judge, judging what a man of power is doing. I reckon its okie to screw with the stocks if your the right gender.

November 11 2010 at 1:51 PM Report abuse rate up rate down Reply
acyrerre

HE BELONGS IN JAIL.. RICH PEOPLE GET BETTER TREATMENT FROM OUT LEGAL SYSTEM THAN THE AVERAGE PERSON. SCREW YOU JUDGE AND WASH D.C.

November 11 2010 at 10:36 AM Report abuse rate up rate down Reply