Judge: Evidence allowed in ex-KB Home exec's trial

AP News
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Posted: Nov 09, 2009 8:19 PM

A federal judge in Los Angeles has rebuffed an effort by the former chief executive of building giant KB Home to exclude materials related to his marriage settlement and other evidence during his upcoming trial for allegedly manipulating stock options.

U.S. District Judge Otis Wright denied the motion Monday by Bruce E. Karatz's lawyers to exclude the settlement filings and eight other categories of evidence.

Karatz pleaded not guilty in March to 19 counts, including mail, wire and securities fraud and making false statements in reports to the Securities and Exchange Commission. He remains free on bond.

Karatz's attorney John Keker did not return a phone message. U.S. attorney's office spokesman Thom Mrozek had no immediate comment.

Karatz's trial is scheduled to begin in February.