A federal judge on Tuesday criticized defense lawyers for former KB Home Chief Executive Bruce Karatz for pressing misconduct allegations against federal prosecutors without sufficient evidence, The Los Angeles Times reports.
Karatz, who is charged with 20 counts of fraud and making false statements during an investigation of his company’s option grants, had accused federal prosecutors of manipulating witnesses in his upcoming trial. Judge Otis Wright II, of the U.S. District Court for the Central District of California, declined to pursue the matter, citing an “astonishing” lack of evidence to support the allegations, according to the Times.
Wright said he was troubled by the defense’s assertion that a judge’s recent finding of misconduct in the backdating case against Broadcom Corp. co-founders Henry Samueli and Henry Nicholas III pointed to possible foul play in the Karatz investigation, the Times reports.
The Karatz trial, scheduled to begin March 9, is a chance at redemption for the Justice Department, after a series of disappointments in previous stock options backdating cases — most prominently, the Broadcom matter.
Assistant Attorney General Lanny Breuer, the head of the Criminal Division, said in a recent interview with Main Justice that the department was taking a “hard look” at the backdating cases. But he cautioned that the outcome of the Karatz trial would not necessarily determine the department’s course.
“We take a hard look — whether we’re talking about stock options cases or whether we’re talking about honest services cases, where it’s our obligation to assess the state of the law,” Breuer said. “That’s what we’re doing in the Criminal Division and that’s what the U.S. Attorneys’ offices are doing. Once they do that I don’t think there’s any one outcome that necessarily flows from that.”
Karatz who is currently suspended as a member of the California Bar and his defense team Keker & Van Nest LLP have only one way out? – To infer that the witnesses Johnson and Ray have been tampered with by Prosecutors (Both are indicted ex KB Home high level execs – disgruntled employee copout)? Unless Karatz & Keker have any another secret or surprise plan or solution up their sleeve Broadcom’s defense won’t cut it, but we do love the legal wrangling! Honorable U.S. District Judge Otis D. Wright II of the Central District of California does not like diversion or timewasters Bruce the real crime is when you are the highest paid CEO in the country and are criminally involved in your own pay that all that gets produced by Bruce Karatz (Nero Fiddling) are KBH Lemons, it can’t even be sold! A new home constructed with cheap materials by your penny saving-pound foolish, undocumented workers who don’t communicate in the same language as you, KBH just rounded them up this morning in the back of a pick-up. Just Google “KB Home Sucks” to see the hundreds of Bruce Karatz and Jeffery Mezger current CEO of KBH’s poorly put up KB Homes – where Karatz and Mezger’s profit in the boardroom is a number one priority and KB homeowners are disregarded. It’s a sad day in America that you were the top paid CEO (next to Madoff) isn’t enough you need even more and you produce such a bad Product. Others in KB’s Board who built the Lemons include: Stephen Bollenbach, Michael McCaffery, Melissa Lora, Leslie Moonves, Luis Nogales J.D., Ronald Burkle, Kenneth Jastrow II, Timothy Finchem, & Robert Johnson who profit as KB Directors.