Charges against KB Home CEO Bruce Karatz

Felony charges against Karatz After a monthlong trial, a federal grand jury is expected to begin deliberations Friday on 20 felony charges against former KB Home Chief Executive Bruce Karatz. He has pleaded not guilty to all charges. They are:* Seven counts of mail fraud. These allege that Karatz mailed compensation committee agendas and reports to KB’s auditors that contained false statements.* Five counts of wire fraud. These allege that Karatz used e-mail and fax machines to exercise backdated options.* Three counts of securities fraud. These allege that Karatz issued backdated options, exercised backdated options and asked the company’s compensation committee to include a false statement in the company’s 2006 proxy.* Five counts of making false statements, including three in a proxy statement, one in a quarterly financial report and one to an auditor.