Atlanta-based Beazer Homes USA disclosed in an 8K filing with the Securities and Exchange Commission late this afternoon (March 29) that it had received a subpoena seeking documents related to its mortgage operations from a grand jury operating under the U.S. Attorney for the Western District of North Carolina.
In the filing, Beazer stated that "the subpoena was issued upon application of the Office of Housing and Urban Development, Office of Inspector General and focuses on the company's mortgage origination services." The filing went on to state that neither the FBI nor the Internal Revenue Service had requested documents or information from the company. A BusinessWeek magazine story earlier this week reported the company was under investigation by several federal agencies, including the FBI and IRS.
Earlier in the day, Beazer issued a press release in response to media stories regarding the company. It stated, "Beazer Homes has been in contact with the U.S. Attorney's Office and, at this time, there have been no allegations of any wrongdoing. Instead, Beazer Homes has received a request for documents generally relating to its mortgage business. We are fully cooperating with this request and the U.S. Attorney's Office. We believe this request was fueled by the articles recently published by the Charlotte Observer. Based on our internal investigations to date, we have found no evidence to support the allegations in these articles. We have further been told by the U.S. Attorney's Office that the statements by the FBI and published by Business Week were not authorized and should not have been made."