Karatz Gets Five Years' Probation in KB Home Backdating Case
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Bruce Karatz, the KB Home ex-chief convicted of hiding backdated stock options from auditors and regulators, was sentenced to five years of probation by a federal judge who rejected prosecutors’ call for prison time.
U.S. District Judge Otis D. Wright II, at a hearing yesterday in Los Angeles, ordered the former chief executive officer to pay a $1 million fine, serve eight months of home detention with electronic monitoring and perform 2,000 hours of community service.