November 23, 2011 |
The former chairman of IndyMac Bank has alleged a key banking regulator "specifically directed" him to backdate $18 million in capital onto the Pasadena thrift's books to help prop up the company at the peak of the financial crisis. Michael W. Perry, who is battling fraud allegations connected to the thrift's failure in 2008, said that cash was added to the balance sheet during the first quarter of 2008 even though the money arrived more than a month after the quarter closed. The regulator was Darrel W. Dochow, former Western regional director for the Office of Thrift Supervision, a U.S. Treasury Department agency that "had the final say regarding IndyMac Bank's capital levels," Perry said in a statement posted online.
April 15, 2011 |
Accounting firm Ernst & Young must face a class action suit over option backdating at Broadcom Corp., a federal appeals court has ruled, saying the auditors knew or should have known about the resulting misrepresentations in the Irvine tech company's financial statements. A three-judge panel of the U.S. 9th Circuit Court of Appeals in San Francisco reinstated Ernst & Young as a defendant in the investor lawsuit, overturning a 2009 decision by U.S. District Judge Manuel L. Real.
March 28, 2011 |
Philadelphia Phillies second baseman Chase Utley said Monday he was confident he won't need surgery on an injured knee that has kept him off the field all of spring training, but he wouldn't speculate on when he could return. "Right now there is no timetable," Utley said. "I think we've been pretty patient with it, and I think we're going to continue to. I think that's the smart thing to do and we're going to stay on that track. " Utley, who had remained quiet about his status since early March, said he has not returned to running but has been taking ground balls for several days.
February 17, 2011 |
A former KB Home executive who became a key prosecution witness in the stock-manipulation trial of the company's former chief executive was sentenced Wednesday to three years' probation. Gary A. Ray, KB's former vice president of human resources, had pleaded guilty to conspiring with former CEO Bruce Karatz to obstruct justice. U.S. District Judge Otis D. Wright II in Los Angeles also sentenced Ray to four months of home detention and 600 hours of community service and fined him $10,000.
November 11, 2010 |
Bruce Karatz, whose 20-year run as chief executive of home-building giant KB Home was derailed by allegations that he manipulated the value of stock options, was sentenced Wednesday to five years' probation, including eight months of house arrest. U.S. District Judge Otis D. Wright II also fined the former executive $1 million and ordered him to perform 2,000 hours of community service. Wright rejected prosecutors' request for a lengthy prison sentence, noting that there was no evidence that the crimes damaged KB Home or its shareholders.
November 10, 2010 |
Bruce Karatz, homeboy? The former KB Home chief executive, who is to be sentenced Wednesday on three felony convictions in a stock option manipulation case, has been volunteering his services for the last six months at the Homeboy Industries gang-intervention program in Los Angeles. Karatz has helped the financially troubled agency by "finding bold and creative ways to broaden our brand, increase the revenue in our businesses and invite more stakeholders to invest," said Father Gregory Boyle, Homeboy's founder and executive director.