Gina's Feed
Apr 8, 2010

KB Home ex-CEO trial: fraudster or upstanding?

LOS ANGELES/SAN FRANCISCO, April 8 (Reuters) – Bruce Karatz
sought to boost his pay by illegally backdating stock options,
prosecutors argued on Thursday at the close of their case
against the former head of KB Home <KBH.N>, as defense
attorneys portrayed him as a victim of prosecutorial zeal.

Karatz’s attorney, addressing jurors during closing
arguments of a trial against the once high-flying corporate
chieftain on charges of securities fraud, denied Karatz
intended to defraud and emphasized his “wonderful legacy.”

Apr 8, 2010

KB Home ex-CEO Karatz well aware of fraud – gov’t

LOS ANGELES/SAN FRANCISCO, April 8 (Reuters) – Bruce
Karatz, the former head of KB Home <KBH.N>, sought to boost his
stock by illegally backdating stock options while repeatedly
denying he was “engaged in a a scheme to defraud,” a prosecutor
argued on Thursday.

Karatz, once one of America’s highest-paid executives,
failed to inform KB Home’s chief financial officer or other top
executives that he was engaged in hindsight pricing and
repeatedly lied to internal auditors, Assistant U.S. Attorney
Paul Stern said during closing remarks in Karatz’s trial on
securities fraud charges.

Apr 8, 2010

KB Home ex-CEO Karatz well aware of fraud: prosecutor

LOS ANGELES/SAN FRANCISCO (Reuters) – Bruce Karatz, the former head of KB Home, sought to boost his stock by illegally backdating stock options while repeatedly denying he was “engaged in a scheme to defraud,” a prosecutor argued on Thursday.

Karatz, once one of America’s highest-paid executives, failed to inform KB Home’s chief financial officer or other top executives that he was engaged in hindsight pricing and repeatedly lied to internal auditors, Assistant U.S. Attorney Paul Stern said during closing remarks in Karatz’s trial on securities fraud charges.

Mar 11, 2010

Trial begins for ex-KB Home CEO, accused of greed

LOS ANGELES/SAN FRANCISCO, March 11 (Reuters) – Prosecutors
accused the once high-flying head of KB Home <KBH.N> Bruce
sageKaratz of succumbing to greed and lining his pockets
through securities fraud, in the first salvo of a trial that
will test government efforts to crack down on financial crime.

Karatz appeared in federal court in Los Angeles on Thursday
as prosecutors began their latest case against illegal stock
option backdating, or the practice of retroactively dating
options awarded to employees.

Mar 11, 2010

Trial of ex-KB Home CEO, accused of greed, begins

LOS ANGELES/SAN FRANCISCO, March 11 (Reuters) – Prosecutors
accused once high-flying head of KB Home <KBH.N> Bruce Karatz
of succumbing to greed and lining his pockets via securities
fraud, firing the opening salvo in a courtroom battle that will
test government efforts to crack down on financial crime.

Karatz appeared in federal court in Los Angeles on Thursday
as prosecutors began their latest case against illegal stock
option backdating, or the practice of retroactively dating
options awarded to employees.

Jan 29, 2010

Investors can try new claims vs Apple execs-court

LOS ANGELES (Reuters) – A New York pension fund can try again to sue Apple Inc Chief Executive Steve Jobs and other officers and directors over a stock options plan that allegedly led to stock losses, a U.S. court ruled on Thursday.

A federal court dismissed a lawsuit led by the New York City Employees’ Retirement System, finding among other things, that investors had not shown a link between stock dilution caused by the plan and their losses, the opinion said.

Jan 28, 2010

Netflix drops a few hints on global expansion

LOS ANGELES (Reuters) – Six years after pulling the plug on a U.K. rental service to beat back competition at home, Netflix Inc offered a few clues on Wednesday about its resurgent ambitions to enter an unnamed international market later this year.

Netflix said last quarter that it would launch a small, streaming-only operation in one country in the second half of 2010, and learn from it before moving into other markets.

Jan 27, 2010

Judge okays sales of Stanford property

LOS ANGELES (Reuters) – A U.S. judge on Tuesday approved the sale of real estate owned by corporations controlled by alleged swindler Allen Stanford.

Receiver Ralph Janvey, who is charged with recovering assets for Stanford investors, had asked the court to allow CB Richard Ellis to publicly auction the dozens of parcels of properties in the continental United States and U.S. Virgin Islands “in an efficient and cost-effective manner.”

Jan 26, 2010

Calif. court rejects felony charges in pension case

LOS ANGELES, Jan 25 (Reuters) – The California Supreme
Court on Monday dismissed felony charges against five former
trustees in the City of San Diego pension debacle but upheld a
conflict of interest charge against one former trustee.

The findings in the case involving the $3.7 billion fund
have broad implications for other public pension funds that
appoint trustees from among the beneficiaries, said attorney
Nick Hanna, who represented trustee Cathy Lexin.

Jan 22, 2010

Investors sue Wells Fargo execs over tax shelters

LOS ANGELES (Reuters) – Wells Fargo & Co, shareholders on Thursday sued officers and directors of the fourth-largest U.S. bank, accusing them of embroiling the company in dubious tax shelters that led to millions of dollars in penalties and legal fees when back taxes came due.

The lawsuit was filed in San Francisco Superior Court, two weeks after Wells lost its own court bid against the U.S. Internal Revenue Service to claim $115 million in deductions related to “sale in/lease out,” or SILO, shelters.