While that’s not material to the company, it might well have been material to those who received some of it.Home Depot’s disclosure illustrates some of the problems encountered by auditors and special investigators in trying to uncover the right truth when it comes to archaeological accounting: “…Because of the absence of records prior to 1994, it is unclear whether allocations also postdated the selected grant dates from 1981 through 1993.KB Home is a homebuilding company based in the United States, founded in 1957 as Kaufman & Broad in Detroit, Michigan.It was the first company to be traded on the NYSE as a home builder and was a Fortune 500 company from 2000 through 2008. KB Home was founded in Detroit in 1957 by Donald Bruce Kaufman and Eli Broad. It completed an initial public offering in 1986, and from that time was known as Kaufman and Broad Home Corporation until 2001 when its name was shortened to KB Home.Jurors are awaiting the judge's instructions before beginning deliberations.The 64-year-old former chairman and CEO of the homebuilding firm has pleaded not guilty to 20 felony charges.His attorney says Karatz thought he was following proper procedures and prosecutors haven't proven his guilt. Prosecutors were expected to address jurors later in the day.
Karatz retroactively tied the exercise price of his options to dates when the stock was selling for a low price, which increased his profit when he sold the shares.
LOS ANGELES (AP) — The former head of construction giant KB Home was convicted Wednesday of four felony counts in a stock option backdating scam.
A federal jury in Los Angeles found Bruce Karatz guilty of two counts of mail fraud, one count of lying to company accountants and one count of making false statements in reports to the Securities and Exchange Commission. The 64-year-old former CEO showed no emotion as the verdicts were read.
Similarly, Home Depot (NYSE: HD) admitted in its 10-Q filing that it has improperly dated options from 1981 through 2000 - the longest backdating stretch known to this writer.
Understated compensation: 0 million, at this count.
Karatz is accused of retroactively dating his purchase of company stock to a time when the share price was low, then selling it at a profit.