03/18/2010 05:12 am ET | Updated May 25, 2011

Former KB Home CEO Bruce Karatz Accuses Prosecutors Of Manipulating Witnesses

Launching a prosecutorial misconduct defense that was effective for Broadcom Corp. executives, former KB Home Chief Executive Bruce Karatz has accused federal prosecutors of manipulating witnesses in his upcoming option-backdating trial.

In a motion filed this week in federal court in Los Angeles, Karatz's attorney said two former KB Home employees who once supported Karatz later changed their accounts after meeting with federal prosecutors and FBI agents. The attorney cited the change as an indication of prosecutorial misconduct.