A $50 million dollar mortgage fraud case has been settled.
The fraud case alleges that improper mortgage activities took place and seperately from that, that former exec Michael Rand of the SEC (U.S. Securities and Exchange Commission) manipulated homebuilder's results.
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The Justice Department, which has focused on pursuing mortgage fraud cases during the economic downturn, said as a result of Beazer's alleged activities unqualified home buyers were "induced" to enter into FHA insured mortgages and interest rates for the loans were "improperly inflated."
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CnnMoney
The Justice Department said that Beazer Homes USA Inc. have agreed to pay $5 million to the U.S. government and as much as $48 million to private home owners to settle the allegations that they were involved in fraudulant mortgage activities.
They U.S. governement will not seek further action against the company as long as they satisfy their obligations within the next six months.
I am glad that those who have done people wrong are getting called out for it. It is about time!
07-03-2009, 01:50 AM
$50 M Mortgage Fraud Case Settled
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