Beazer: Mistakes possible in filings
The Atlanta homebuilder blamed its former chief accounting officer, saying he may have "caused" the wrong numbers to be reported. The disclosure may deepen concern about Beazer's financial health. The company already faces a federal criminal investigation of its mortgage practices, and a formal inquiry on unspecified issues by the Securities and Exchange Commission... Michael Rand, the former chief accounting officer, was fired in June after the company said its internal investigation found he had attempted to destroy documents in violation of corporate policies.

Beazer: Mistakes possible in filings
Company charges former accounting chief for having `caused' wrong figures
BINYAMIN APPELBAUM
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Troubled homebuilder Beazer Homes USA may have understated expenses in past filings with securities regulators, the company said Friday.

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The Atlanta homebuilder blamed its former chief accounting officer, saying he may have "caused" the wrong numbers to be reported.

The disclosure may deepen concern about Beazer's financial health. The company already faces a federal criminal investigation of its mortgage practices, and a formal inquiry on unspecified issues by the Securities and Exchange Commission.

The company acknowledged the bookkeeping problems by way of explaining why it missed a Thursday deadline for reporting quarterly financial results to the SEC. In a securities filing Friday, Beazer said it was working to determine whether any of its past financial results were misstated, delaying its latest filing.

Companies that fail to file can be delisted from the stock market and may be in default on their lending agreements, although both consequences remain unlikely, analysts said.

Beazer could also face new lawsuits from shareholders alleging they were misled by the company's past filings.

The Observer has reported, in articles since March, that Beazer's operations in the Charlotte area sometimes violated federal laws and regulations. The Observer found the company's aggressive sales practices contributed to a high rate of foreclosures in many of its local developments.

In response, the FBI and other federal agencies launched an investigation. Beazer's board of directors then announced its own investigation.

Michael Rand, the former chief accounting officer, was fired in June after the company said its internal investigation found he had attempted to destroy documents in violation of corporate policies.

Beazer shares closed at $15.19 in trading Friday on the New York Stock Exchange, down 9.37 percent on the day and 68 percent this year.

The shares hit a five-year low of $8.10 on Aug. 1 amid rumors the company might file for bankruptcy. Beazer has denounced such speculation as "scurrilous and unfounded."

The company's latest news was filed after the market closed. A company spokeswoman could not be reached for comment.

www.charlotte.com/foreclosure

In a four-part series, the Observer found Beazer Homes USA sometimes crossed the line between selling to people who could barely afford homes and selling to people who couldn't. Ten Beazer developments in Mecklenburg have foreclosure rates of 20 percent or higher.

An online map allows you to scan Mecklenburg developments for foreclosures. Sold a nightmare