Beazer, Still Under Probe, Restates Earnings

Beazer Homes USA, an Atlanta-based homebuilder that is under investigation by various state and federal agencies regarding mortgage origination practices, has filed restatements of earnings that reflect an increase of $27.6 million in retained earnings from 1998 through 2006. Beazer announced last year that an internal investigation had found that its mortgage unit, Beazer Mortgage Corp., violated Federal Housing Administration rules, especially regarding downpayment assistance programs. In addition to such violations, Beazer said its Audit Committee discovered accounting errors and irregularities resulting primarily from "inappropriate accumulation of reserves and/or accrued liabilities associated with land development and house costs" and inaccurate revenue recognition related to certain home sale/leaseback provisions. The company said it is still under investigation by the U.S. Attorney's Office in the Western District of North Carolina and other state and federal agencies regarding the matters that have been the subject of the Audit Committee's independent investigation. Beazer can be found online at http://www.beazer.com.