Former Chief of KB Home Indicted


MARCH 6, 2009

Former Chief of KB Home Indicted
Karatz Accused of Inflating Value of Stock-Options Grants and Hiding Scheme

The former chief executive of KB Home, Bruce Karatz, has been indicted on multiple counts of fraud and other charges in connection with the alleged backdating of stock-option grants.

Mr. Karatz allegedly inflated the value of his stock-option grants to boost his pay and concealed the scheme when KB officials investigated the matter, according to an indictment released Thursday by a federal grand jury in Los Angeles.

Mr. Karatz, 63 years old, was one of the housing industry's highest-profile and most lavishly paid executives, whose knack for flashy marketing ploys boosted KB's sales during the housing boom.

Mr. Karatz resigned ...