June 28, 2007

And then the homebuilders started going to jail...

Beazer Accountant Fired in Document Destruction Try

June 27 (Bloomberg) -- Beazer Homes USA Inc., a homebuilder that's under investigation by the FBI for potential fraud, fired its chief accounting officer for violating the company's ethics policy by attempting to destroy documents.


Beazer fired Michael Rand after an internal probe of the company's mortgage origination business, according to a filing today with the U.S. Securities and Exchange Commission. Messages left at Rand's home and with Leslie Kratcoski, a Beazer spokeswoman, were not immediately returned.

The Federal Bureau of Investigation opened an investigation of Beazer after the Charlotte Observer reported on March 25 the company sold homes to low-income buyers who couldn't afford them, using mortgages based on expectations the buyer's income would rise. That practice is prohibited by the Federal Housing Administration, which provides loan guarantees for home buyers.

11 comments:

Conversekidz said...

Easy Money Lend+Blind Eye by the Feds= Greed

Greed + UnEducated Borrowers + Crooked Agents = Run Up of Housing Market

Run Up of Housing + Sheep = I cannot afford a home (yet)


I hope they fry and houses drop down to a level where it makes sense to own again.

Anonymous said...

*******************************


Not enough room due to Senators and congressional members!

Anonymous said...

Keith,
I told you before, I can get 30 people in that cell, especially after they've lost some weight on my diet and workout program.
That cell is too good, Mr. Rand needs to spend a couple decades underground in a West Virginia coal mine.

Sixpercenter said...

Are they ALL dirtbags? Apparently, yes.

Anonymous said...

Hell we are only 4 months into the sub prime mess. Already we are getting the coachroches into the light. Maybe soon we will see Bob Toll in his white limo being chased down by 20 police cars on tv ala OJ. Much more interesting than Paris crying on tv.

coffee is for closers still solvent said...

Damn, Paris Hilton used up all the toilet paper in that cell already...

Staples Employee said...

I know the shredders have been moving of the shelf as fast as we put them on - just saying- FWIW...

Anonymous said...

just wait until they get around to w... Paraguay isn't far enough away buddy!

turdly said...

homebuilders flipping back cash, and those homebuilders using inflated appraisals will be the first to go to jail. Followed by; appraisers, escrow agents who cut those flip back checks, then borrowers. brokers will for the most part skate out of this one. Those truly guilty will go to jail, but most of the fraud is consumer and builder and appraiser based.

HauspocalypseNow said...

remember homebuilders are your friend for creating supply!

even if its pricey it runs down resale prices.
NO NIMBY BS!
BUILD BUILD BUILD

Sellin @ Da Drop said...

Hey the picture looks like the studio apartment my neighbor just bought in Irvine for 430k. Does that one have granite countertops? I see the stainless steel aplliances.