Indictments

Bruce Karatz, who rode the housing boom to become one of the highest-paid executives in the country, was indicted by a federal grand jury Thursday on charges of manipulating stock options -- becoming one of the few executives to face criminal charges in the nation's options backdating scandal. Karatz, 63, served as chairman and chief executive of Westwood-based KB Home from 1986 to 2006, when he resigned under fire.

Bruce Karatz may be facing prison time, but he was the one doing the comforting before his bail hearing in federal court last week. The former chief executive of KB Home rubbed the shoulders of his visibly upset fiancee, Lilly Tartikoff, whispering in her ear and consoling her. By all appearances, you might not know that he was the one being forced to turn in his passport and pledge a Bel-Air mansion as collateral to make bail.

R. Allen Stanford, the Texas billionaire charged Tuesday with perpetrating an $8-billion investment fraud, cast himself as offshore investment guru to the transatlantic jet set and benefactor to the Caribbean islands' poor through multimillion-dollar promotions of their beloved sport of cricket.

Federal authorities Thursday accused a south Los Angeles County street gang of a litany of crimes, including the murder of a sheriff's deputy and racially motivated attacks designed to drive African Americans from their town.

Federal authorities announced indictments Monday against the reputed leaders of Mexico's Gulf cartel and its paramilitary force, the Zetas, accusing them of trafficking tons of cocaine and marijuana from South America through the Texas-Mexico border. Three of the men are identified as the "triumvirate" that manages the far-flung enterprise, dividing its territories among themselves.

A Stanford law school graduate who allegedly boasted online that she paid off her student loans by working as a high-priced call girl pleaded guilty Monday to tax evasion and agreed to pay $313,134 in penalties. Cristina Warthen, 35, who went by the name Brazil and advertised on a website called TouchofBrazil, traveled across the country to provide her services from 2001 to 2003, according to court documents filed by federal prosecutors in Northern California. She now lives in Los Angeles.

Former Illinois Gov. Rod R. Blagojevich, his brother and a former top fundraiser were among six men indicted Thursday on political corruption charges, the U.S. attorney's office in Chicago announced. The sweeping indictment comes four months after Blagojevich was arrested and charged with engaging in pay-to-play politics in a major federal complaint that accused the Democrat of trading state jobs, contracts and regulatory favors for campaign contributions.

Temple City's mayor, former mayor and an aide were indicted Wednesday on charges of perjury and soliciting and receiving bribes from a developer in exchange for supporting his $75-million mall project. Mayor Judy Wong, former Mayor Cathe Wilson and Wilson's campaign treasurer, Scott Carwile, pleaded not guilty to the charges after the 21-count grand jury indictment was unsealed by Los Angeles County Superior Court Judge Patricia Schnegg.

For a few terrifying moments in the early morning hours of the recent Martin Luther King Jr. holiday, authorities in Los Angeles were concerned that terrorists had launched an attack in a downtown subway station. Several people had been overcome by a cloud of noxious gas, causing at least two of them to begin vomiting and a Los Angeles County sheriff's deputy to experience a burning sensation in his eyes and lungs.

The day after a grand jury indicted a Texas Supreme Court justice on arson-related charges, the district attorney here had the case dismissed, arguing there was insufficient evidence to move forward. The unusual action Friday by Harris County Dist. Atty. Chuck Rosenthal in the case against Justice David Medina and his wife outraged two members of the grand jury, who called it a blatant example of politics trumping justice. Both Medina and Rosenthal are Republicans.