Beazer Homes on Monday (July 9) reported in a filing with the Securities and Exchange Commission that Moore Capital Management LLC, a New York-based hedge fund, had purchased 1,987,500 shares, equivalent to 5.08% of its outstanding stock.

Trading in the company's stock, which has lost more than half its value since late last year, picked up late Monday with little movement in the price. In midmorning trading on Tuesday, the stock (NYSE: BZH) was down 2.2% at $22.69 per share on average volume.

Beazer is facing investigations into its mortgage lending unit by the Department of Housing and Urban Development and the U.S. Attorney's Office for the Western District of North Carolina. It also has disclosed that the Securities and Exchange Commission is conducting an informal inquiry. The company has said it was cooperating with authorities regarding the investigations.

In late June, Beazer dismissed its chief accounting officer, Michael Rand, for violating company policy regarding destruction of documents.

A series of articles in The Charlotte Observer this spring alleged that mortgages made by the company were based on false financial information and that applications were altered without the knowledge of applicants to make them appear better qualified.

A representative of the company's investor relations department had no immediate comment when contacted by Big Builder Online.