Karatz, 63, faces up to 415 years in federal prison if convicted on all 20 counts in a March 6 indictment accusing him of awarding himself and others millions of dollars in undisclosed stock-based compensation over a seven-year period.
U.S. District Judge Otis Wright II said at Monday's hearing that he wanted a trial date set, but would revisit pretrial progress at a July 13 hearing 'to focus everyone's mind.'
Assistant U.S. Attorneys Alex Bustamante and Paul Stern, who indicated they need two to three weeks to put on their case, argued for the Nov. 3 start, saying the defense team already had most of the evidence the government would present.
Defense attorneys John Keker and Michael Proctor argued the government's date was 'aggressively unreasonable,' based on the huge number of documents and witnesses to review, and said the case should start in April 2010.
'Is that April 2010?' Wright asked Keker. 'I almost lost consciousness.'
Keker estimated the defense needs four to five weeks to put on its case.
Karatz came to court with his grown children, his girlfriend, philanthropist Lilly Tartikoff, and former Los Angeles Mayor Richard Riordan, who said he was 'here to support my good friend.'
'I know the character of Bruce Karatz. He is one of the most compassionate and honorable people I have ever met,' Riordan said outside court.
Karatz was one of the nation's best-paid executives, with compensation -- much of it from stock awards -- totaling $232 million in his last three years years at KB Home.
He left the company in November 2006 amid internal and Securities and Exchange Commission investigations into the alleged backdating. Karatz paid more than $7 million to settle the SEC claims but did not admit or deny wrongdoing.
(Reporting by Gina Keating; Editing by Matthew Lewis, Phil Berlowitz) Keywords: KARATZ/ (gina.keating@thomsonreuters.com; + 1 213 955 6776; Reuters Messaging; gina.keating.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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