SEC begins informal investigation of Beazer
Beazer Homes USA Inc. reported in a Securities and Exchange Commission filing Thursday that the SEC has launched an informal investigation of the company.In March, Beazer received a grand jury subpoena from the U.S. Attorney's Office in the Western District of North Carolina seeking documents related to its mortgage origination services. Media reports have said the homebuilder is under federal investigation for alleged mortgage fraud, a charge the company denies. Beazer has said the U.S. Attorney's Office has "made no allegations of wrongdoing by Beazer Homes at this time and that the statements made by an FBI spokesperson about the fact of an investigation and the scope of the investigation were unauthorized, and should not have been made."

SEC begins informal investigation of Beazer
May 3, 2007
Beazer Homes USA Inc. reported in a Securities and Exchange Commission filing Thursday that the SEC has launched an informal investigation of the company.

The Atlanta-based homebuilder (NYSE: BZH) said the inquiry will determine whether any person or entity related to Beazer Homes has violated federal securities laws. Beazer Homes will cooperate fully with the inquiry, it said.

In March, Beazer received a grand jury subpoena from the U.S. Attorney's Office in the Western District of North Carolina seeking documents related to its mortgage origination services. Media reports have said the homebuilder is under federal investigation for alleged mortgage fraud, a charge the company denies. Beazer has said the U.S. Attorney's Office has "made no allegations of wrongdoing by Beazer Homes at this time and that the statements made by an FBI spokesperson about the fact of an investigation and the scope of the investigation were unauthorized, and should not have been made."

Beazer also has been named as a defendant in a putative securities class action lawsuit and a putative homeowner class action lawsuit. And it has recently learned a second putative homeowner class action lawsuit has been filed in South Carolina and that it has been named as a nominal defendant in a shareholder derivative complaint filed against some of its current and former executive officers and directors claiming violations and breaches of fiduciary duty related to the company's mortgage origination business. Beazer said it is cooperating with the U.S. Attorney and the document production request and intends to vigorously defend each of the lawsuits.

Beazer's audit committee has begun an internal review of the company's mortgage origination business and related matters and has retained independent legal counsel and an independent financial consultant to assist with the review.

http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=ACBJ&date=20070503&id=6845048