SEC Investigates KB Home
October 13, 2009 by Stephen Kersey
Filed under Business
The financial crisis has led the Securities and Exchange Commission to keep an even closer eye on businesses to make sure that the nation’s economy does not suffer because of immoral practices on the part of a small group of people. Homebuilder KB Home has become the latest company to come under the SEC’s magnifying glass due to “possible accounting and disclosure issues,” a potentially serious situation for KB Home.
KB Home is no stranger to such proceedings, as the company’s former CEO, Bruce Karatz, is currently awaiting trial concerning federal charges that the executive fraudulently manipulated stock options. Karatz resigned in 2006 after an investigation revealed his fraudulent practices and he paid more than $7 million to the SEC in 2008 to settle the charges, still not admitting any wrongdoing.
The company released the news of this latest investigation in a quarterly regulatory filing on Friday, confirming it in a separate report today. According to the company’s spokesperson, the SEC’s order of investigation did not specify the subject matter and KB Home is not willing to release any speculation concerning the possible target of the SEC’s investigation.
KB Home (Image: Flickr)
