Beazer Homes USA, Atlanta (NYSE:BZH) late Thursday announced its CEO, Ian J.McCarthy, has reached a resolution with the Securities and Exchange Commission under the Sarbanes-Oxley Act to return approximately $6.5 million in cash plus unspecified shares of stock that were awarded while the company was under investigation for accounting fraud.
According to a company release, "Under Section 304 [of Sarbanes-Oxley], where a public company corrects errors in its financial statements resulting from misconduct, the SEC can clawback for the company incentive cash and equity based compensation and stock profits earned by the company's CEO, even if he did not engage in the misconduct."
McCarthy admitted no wrongdoing nor was he charged with such by the SEC, the company said.
In May of 2008, Beazer restated its financial statements covering fiscal years 2002-2007. "As previously disclosed, in 2008 and 2009 the company resolved the federal and state governmental investigations into misconduct involving these financial statements," the company stated.