Gary A. Ray, KB Home Inc.? former head of human resources, has agreed to pay more than $550,000 to settle government allegations that he engaged in stock-options backdating.
Ray didn? admit or deny guilt and agreed to be barred from serving as an officer of a public company for five years, the Securities and Exchange Commission said in statement. Under the deal, he will return more than $500,000 in proceeds and interest from the stock options, plus pay a $50,000 fine.
Ray received backdated awards amounting to 380,000 shares of KB Home stock and profited more than $480,000 from exercising the options, the SEC said.
Ray pleaded guilty in February to a separate criminal conspiracy charge in federal court in Los Angeles, admitting that he helped obstruct the SEC? backdating probe. He has not yet been sentenced in that case and faces a prison term as long as five years.
Former chief executive Bruce Karatz pleaded not guilty in March to criminal charges that he backdated stock options granted to him and other executives and then obstructed the investigation. The case is pending.
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