The Securities and Exchange Commission [SEC] today announced a settlement with the chief executive officer of Atlanta-based homebuilder Beazer Homes USA Inc. (BZH) to recover several million dollars in bonus compensation and stock profits that he received while the company was committing accounting fraud.
According to the SEC’s complaint filed today in federal court in Atlanta, “CEO Ian J. McCarthy previously failed to reimburse Beazer Homes for bonuses, other incentive-based or equity-based compensation, and profits from Beazer stock sales that he received during the 12-month periods after his company filed fraudulent financial statements during fiscal year 2006.”
“Without admitting or denying the SEC’s allegations, McCarthy, the SEC said in a statement, “agreed to reimburse Beazer $6,479,281 in cash, 40,103 restricted stock units (or its equivalent), and 78,763 shares of restricted stock (or its equivalent). This reimbursement represents McCarthy’s entire fiscal year 2006 incentive bonus ($5,706,949 in cash and 40,103 in restricted stock units), $772,232 in stock sale profits, and 78,763 shares of restricted stock granted in 2006.”
BZH gained 14 cents, or 3.04%, to $4.75 at 2:09 p.m. in New York Stock Exchange composite trading.
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