Beazer Settles to Avoid Prosecution

Relief is on the way for the victims of Beazer Homes USA Inc.’s alleged mortgage fraud against those who had federally-insured mortgage loans for its homes. According to the Justice Department’s announcement today, Beazer will pay $53 million as part of the settlement, with $5 million going to the federal government and $48 million to victimized homeowners.
 
Atlanta-based Beazer made the settlement with North Carolina prosecutors so that it would not be held otherwise accountable for mortgage and accounting fraud, including the manipulation of company earnings. Prosecutors argued that Beazer made loans to buyers despite income requirements and then tried to hide the results from the Federal Housing Administration.
 
Beazer has emphasized its cooperation since all of the allegations came to light and looks forward to getting back to legitimate business as usual, according to a statement. Like most wrongdoers caught red-handed, Beazer has promised to never do it again and will go forward with renewed honesty and commitment to ethics.

Beazer Homes (Image: Flickr)