Saturday, September 25, 2010

DOJ Responds to Criticism of Beazer Homes Investigation - CNBC

DOJ Responds to Criticism of Beazer Homes Investigation - CNBC: "The tit-for-tat letters reveal a rare public split between federal agencies over how to proceed in the drawn-out investigations into Beazer Homes [BZH� 4.18� � 0.20� ( 5.03%) � ], whose troubles were first revealed in 2007 and became one of the early indicators of the potential rot in the nation’s housing market.

The dispute is significant because parts of the wide-ranging investigation into Beazer are still ongoing. As recently as August 24, the government indicted Michael Rand, the former Chief Accounting Officer for Beazer Homes on eleven criminal counts, including conspiracy, securities fraud, and obstruction.

In a letter to Attorney General Eric Holder first reported Wednesday by CNBC, the Inspector General of the Department of Housing and Urban Development blasted the Department of Justice for soft-pedaling its investigation of Beazer and allowing a 2009 settlement of up to $50 million that recouped too little money from the company. In the settlement, Beazer took responsibility for conspiracy and securities fraud."

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