Beazer Homes USA will pay victims $50 million
Posted by: admin in Real Estate and HousingFiled under: Law, Housing, Recession
On Wednesday, federal investigators filed mortgage and bookkeeping fraud charges against Beazer Homes USA (NYSE: BZH). The homebuilder will be able to escape prosecution because it concurred to pay $50 million to victims and to accept responsibility for its improper actions.
Beazer found itself charged thanks to its participation in a scheme designed to fraudulently increase its profits and sell homes. Reportedly, the company also participated in an accounting scheme that was designed to “smooth earnings.” Thanks to these schemes, homebuyers defaulted on their loans and some neighborhoods saw home values plummet thanks to loan defaults. Say and federal investigators have scrutinized Beazer since March 2007, finding that the company’s “aggressive sales tactics” contributed to an “unusually high foreclosure rate in many of its local starter-home communities.”
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Beazer Homes USA will pay victims $50 million originally appeared on BloggingStocks on Thu, 02 Jul 2009 12:50:00 EST. Please see our terms for use of feeds.
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