Sunday, November 14, 2010

And justice shall prevail. Kinda.

Buried in a recent NY Times edition was the sad story of Bruce Karatz, former chief exec of KB Home. It seems the law caught up with Bruce and dragged him to justice after he went into hiding. Bruce, you see, had been found guilty in April of hiding backdated stock options from auditors and regulators. To the tune of more than $6,000,000. 

Now I'm not financial whiz, and don't understand how the markets work, but I do know that hiding stuff from the Feds if you're a chief exec is not a good idea. Unless you already have your ticket to Costa Rica. 

So they dragged poor Brucie in and administered proper punishment. He must pay a $1,000,000 fine. Do the math: that's a $5,000,000 profit. And now comes the hard time: Ol' Brucie was sentenced to serve 8 months of detention - at home. "Home" in this case is a 24-room mansion in Bell Air, California. That's one of the better 'hoods in LA. 

My personal opinion? I think the law could have taken a tougher stance. They should have restricted him to the use of only one bathroom. Kept him from spending more than 1 hour a day in the billiards room. Put the entire East Wing off limits, except on holidays. Made him vacuum his swimming pool once a week. And forced him to eat all his meals alone, at the long dining room table in the spacious dining room, then do his own dishes. 

Bruce, however, takes a positive view of the situation. "I won't get over to the links for a little while, but I can keep my swing in shape on my private driving range." Maybe the Feds should've taken away his clubs, at least his driver. But that would be deemed "cruel and unusual punishment." 

1 comment:

  1. Don't get me going about the criminal justice system.