Judge scolds Karatz jury

He was none too pleased about reading that one of the jurors approached former Mayor Richard Riordan on the front steps of the courthouse, shook his hand and said, "I'd like to thank you for your years of service to the city." You see, Riordan was testifying on behalf of former KB Home CEO Bruce Karatz, who is charged with illegally backdating stock options. (So why is that juror still a juror?) From the LAT:

Before the trial resumed on Friday, U.S. District Court Judge Otis D. Wright II told jurors that they are to steer clear of witnesses in the case. "Try to restrain yourselves," the judge said. "You don't want to be seen having contact with one side's witnesses. We don't want to be reading any more articles in the L.A. Times."

After that came another character witness: Eli Broad.

Broad, who co-founded the company that became KB Home in 1957 and later operated SunAmerica insurance company, told jurors that he had known Karatz for 38 years and considered him to be a man of impeccable integrity. "I know of no instance in those 38 years where he's done anything unlawful or improper," Broad said under questioning from defense attorney John Keker.

Broad acknowledged under cross-examination he had not been involved with KB Home in 15 years.


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Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
 
Mark Lacter, business writer and editor was 59
The multi-talented Mark Lacter
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