Follow LA Observed on Twitter here
--Hollywood private eye Anthony Pellicano was sentenced to 15 years for wiretapping the ex-wife of billionaire Kirk Kerkorian during a bitter child support battle. Pellicano was hired by attorney Terry Christensen to intercept and record the phone calls of the wife, Lisa Bonder Kerkorian. Christensen was found guilty of conspiracy to commit wiretapping, and aiding and abetting a wiretap, and he was sentenced last month to three years in prison and fined $250,000. (LABJ, LAT)
--Mattel Inc. agreed to pay $12 million to 39 states to settle claims that it shipped toys tainted with lead paint. Under the settlement, the El Segundo-based toy company agreed to implement new federal guidelines reducing lead content in toys by August 2009. The accord, filed in Massachusetts state court, resolves a 15-month probe of Mattel’s Chinese-made Sesame Street dolls, Dora the Explorer accessories and dozens of products shipped to the U.S. last year. “This settlement should help stem the tsunami of toxic toys threatening to swamp playrooms and playpens, poisoning children,” Connecticut Attorney General Richard Blumenthal said in a statement. His state will get $218,028 of the settlement. (Bloomberg)
--A former executive of KB Home pleaded guilty to conspiring to obstruct justice in connection with stock option backdating at the L.A.-based home builder. The U.S. Attorney’s Office said Gary Ray admitted that he and former KB Home CEO Bruce Karatz submitted false and misleading reports about the backdating. In September, Karatz agreed to pay $7.2 million to settle SEC charges that he fraudulently backdated stock options issued to himself and other employees for at least six years. Ray faces up to five years in federal prison and agreed to corporate with the government in its continuing investigation of stock option backdating at KB Home. (LABJ)
Mark Lacter created the LA Biz Observed blog in 2006. He posted
until the day before his death on Nov. 13, 2013.