Bruce Karatz is one of only six executives that has been criminally charged with fraudulent options backdating practices. However, more than 70 execs have settled civil charges. The former CEO of KB Homes intends to fight it out in court. Karatz has retained the same lawyer who represented former investment banker Frank Quattrone. A courtroom showdown may be in the offing; it will shed some interesting light on the entire scandal.

Overall, while much of the backdating stopped after Sarbanes-Oxley became law, Karatz's case is different in that the backdating continued. The LA Times says the case against him is compelling. The government charges he labored hard to price the options favorably, benefiting himself as well as employees and "then concealed the backdating from KB Home's board of directors, its compensation committee, its shareholders and the SEC." Could be a barnburner of a trial. The only executive convicted in a trail was Gregory Reyes, ex-CEO of Brocade Communications. 

For more:
- here's the LA Times article

Related Articles:
Backdating probes put companies in a quandary
End to hedge funds bond default strategy?
Options grants backdating probe takes a new turn