Eli Broad (power behind the dismantling of public ed) exec charged with financial chicanery

[Hannah Bell]

Eli Broad is latest character witness for ex-KB Home chief Bruce Karatz

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...

Broad left Kaufman & Broad, as the company was then known, in 1986 and handed control to Karatz. Under Karatz's leadership, profits at the company soared.

Karatz faces 20 felony charges of securities fraud, mail fraud, wire fraud and making false statements in securities filings.

http://www.latimes.com/business/la-fi-karatz3-2010apr03,0,1498024.story



Broad's no stranger to this sort of thing...

Wealthy, Helped by Wall St., New Find Ways to Escape Tax on Profits
Published: December 1, 1996

Last spring, Wall Street bankers made an irresistible sales pitch to Eli Broad, the billionaire home builder and co-founder of the booming SunAmerica insurance empire.

For a fee, they would help him lock in $194 million in profits on some of his SunAmerica stock and free up cash to pay family debts -- best of all, without having to sell the stock and give up all future profits on his shares. He would therefore not owe a penny of the estimated $54 million in taxes he would face if he sold the shares.

Mr. Broad accepted. ''We have our cake,'' he said recently with a chuckle, ''and are eating it too.''

The thousands of less affluent investors who also own SunAmerica stock, either individually or through mutual funds, get no such deals. To cash in on their stock, they almost invariably have to sell it and face a Federal tax of up to 28 percent on their profits

http://www.nytimes.com/1996/12/01/business/wealthy-helped-by-wall-st-new-find-ways-to-escape-tax-on-profits.html


Sure, they only care ABOUT THE CHILDREN.....




KB Home, Countrywide accused of $2.8 bln fraud

LOS ANGELES, May 7 (Reuters) - Homeowners brought a federal racketeering lawsuit on Thursday against KB Home (KBH.N), the former Countrywide Financial Corp and appraiser LandSafe Inc, accusing the companies of operating a scheme to fraudulently inflate sales prices of KB homes in Arizona and Nevada.

The lawsuit, filed in federal court in Phoenix, claims the three companies colluded to overprice as many as 14,000 homes in the two states by an average of $20,000, for an estimated total of $2.8 billion between 2006 and the present. The plaintiffs seek class action status and triple damages.

http://uk.reuters.com/article/idUKN0742190620090507


Anonymous said...

Eli Broad who's name was on Kaufman & Broad which later became KB Home, should start educating the employees of KB Home on how to build a home and what customer service actually is. Do they have to pass an examination on how to use a hammer? Can they read a blueprint? Can they communicate? Is KB Home building cheap junk so the stock price is the only issue?

http://www.akbhomesucks.com

just Google "KB Home Sucks" Eli.

Bruce Karatz xCEO of KB home goes on trail March 9th 2010 for stock manipulation. I bet his teachers and professors are so proud of Bruce. What id Karatz education teach him Mr. Broad! This is the education we need more of. White collar crime University with ELI Broad & Companies name on it! What a reputation Broad & Karatz & KB Home have.

ttp://dbellel.blogspot.com/2009/06/arne-duncan-great-educator-or-great.html.

[Starry Messenger]

1. k & r

[Hardrada]

2. Excellent!

[Hannah Bell]

3. kick

[madfloridian]

4. kick

and rec

[Starry Messenger]

5. But he's such a wonderful man

Why are you picking on him?? :cry:

[Hannah Bell]

6. poor little eli -- he almost lost some money on his 50 gazillion shares of aig.

good thing he got a bailout.

AIG's troubles amount to big money, even to L.A's wealthiest.
Publication: Los Angeles Business Journal
Publication Date: 18-APR-05

"Philanthropist and civic leader Eli Broad, who sold his financial services firm, SunAmerica, to AIG in 1998, holds 29.6 million AIG shares, or roughly 1.1 percent of common stock, according to filings with the Securities and Exchange Commission. Those holdings, now valued at $1.54 billion, have contracted by about $718 million in the past year."

http://goliath.ecnext.com/coms2/gi_0199-4222485/AIG-s-troubles-amount-to.html.

[Starry Messenger]

7. He was just trying to help

lol

http://video.forbes.com/fvn/business/cw_elibroad092608

[LWolf]

8. k&r

[proud2BlibKansan]

9. But he's a Democrat so it's okay!

:sarcasm: