The Rove Repubican Racket targeted companies who were accused of backdating stock options and other financial instruments.
Filed at 3:54 p.m. ET LOS ANGELES (AP) -- Federal prosecutors are accused of intimidating two KB Home employees while soliciting testimony in a felony-backdating case against the building giant's former chief executive. The U.S. attorney's office says the allegations of prosecutorial misconduct in the Bruce Karatz case are detailed in some 20 motions a judge will consider Tuesday in Los Angeles.
Karatz's lawyers said in a court filing in January that the two employees changed their stories after meeting with prosecutors. They're seeking a pretrial hearing to determine whether the workers were improperly influenced. The U.S. attorney's office said prosecutors acted appropriately. Karatz has pleaded not guilty to 19 counts, including making false statements to the Securities and Exchange Commission.
