Two months after the federal government’s criminal cases against Broadcom Corp.’s top executives collapsed, the U.S. attorney’s office is taking aim at another stock-options backdating target: former KB Home chief Bruce Karatz.
The stakes will be high for federal prosecutors when Karatz’s trial starts Tuesday in Los Angeles.
Not only will they be seeking to punish a man they say flouted federal law while making millions of dollars for himself and his employees, they’ll also be seeking to improve the record of a massive options crackdown that so far has yielded few convictions.
Several high-profile options trials have backfired on prosecutors — most recently their cases against Henry Samueli and Henry T. Nicholas III, co-founders of Broadcom, the Irvine chip designer.
• Read the full Los Angeles Times story.
