Beazer Homes Faces Fraud Allegations

Beazer Homes says its internal review has not turned up anything to support fraud allegations that have begun to swirl around the Atlanta-based company.

The FBI, the IRS and U.S. Justice Department officials are all investigating Beazer for alleged mortgage and other fraud, a report on BusinessWeek.com said Tuesday.

There’s all sorts of potential fraud issues here, FBI spokesman Ken Lucas said. We’re looking at all types of (potential) fraud associated with Beazer — corporate, mortgage, investments.

Beazer said in a statement late Tuesday it cannot comment on or verify any investigation. However, we will fully cooperate with any investigation by any government agency, The Atlanta Journal-Constitution reported.

Referring to an earlier report in the Charlotte (N.C.) Observer, Beazer said, Based on our internal investigations to date, we have not found any evidence to support the allegations in that newspaper.

In response to the sharp downturn in the housing industry, Beazer has cut jobs and its land holdings. Last month, it fired its top legal officer for undisclosed violations of company policies and its chief financial officer has announced he is taking another job. Beazer shares dropped about 13 percent in after-hours trading Tuesday.