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Ex-CEO deserves a stiffer penalty

September 21, 2008

I am outraged at the settlement of the backdating suit with former KB Home Chief Executive Bruce Karatz. ("Ex-KB chief settles SEC suit," Sept. 16.)

He pays $7 million, agrees not to be an officer or director of a public company for five years and admits no liability. He collected more than $232 million in his last three years with the company. His fine is 3% of that compensation. Now that's a real deterrent for others and quite an attention getter for Karatz.

What on earth do you have to do to get charged with fraud?

No liability? Get real.

David R. Gillespie

Bonita, Calif.

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Bruce Karatz, the former CEO of KB Home, gets off with paying back all or part of the money he got illegally.

This is as if a burglar got off without further punishment if he returned the stolen goods and paid to repair the window he broke to gain access.

His lawyer says he now wants to get on with the next chapter of his life. That next chapter should be some time spent in a federal prison.

Warren Dace

Los Angeles

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