Beazer Homes USA Inc. has received a grand jury subpoena for documents as part of a federal investigation of possible fraud in the company's mortgage lending practices and other financial transactions, the homebuilder said in a regulatory filing Thursday.
The disclosure by the Atlanta-based company reinforces a statement by Beazer issued Wednesday in which it said it had been in contact with the U.S. attorney's office and it was cooperating with a request for unspecified documents.
Beazer said the subpoena was issued by the U.S. attorney's office in western North Carolina and was based upon an application by the U.S. Department of Housing and Urban Development's inspector general's office. The subpoena focuses on the company's mortgage origination services, Beazer said in a filing with the Securities and Exchange Commission.
The company, which is cooperating with the investigation, said it has not received a request for information or documents from the FBI or IRS in this regard.
An FBI spokesman in Charlotte, N.C., where the probe is centered, has said the inquiry began last week and involves "fraud in general" and more specifically is related to corporate, mortgage and investment issues.
Beazer Homes has recently suffered hefty losses amid a downturn in the housing market.
Weak demand for new homes, sales at steep discounts and the need for inventory writedowns have taken a toll on the company's results.
Beazer lost $59 million, or $1.54 per share, in its first quarter ended Dec. 31 compared with a profit of $89.9 million, or $2 per share, a year ago. Revenue slid to $806.4 million from $1.1 billion in the year-ago period.
