SEC Steps Up Beazer Probe - TheStreet

SEC Steps Up Beazer Probe

An informal inquiry has become a formal investigation.
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Beazer Homes

(BZH) - Get Report

said the

Securities and Exchange Commission

has elevated its probe of the company from informal inquiry to formal investigation.

The homebuilder, which disclosed the formalized investigation in an SEC filing Monday, said it will continue to cooperate fully with the agency on the matter. The SEC is investigating whether Beazer has violated federal securities laws.

Beazer has been rocked this year by accusations of improper lending practices at its mortgage-origination business. The Atlanta-based company has launched its own investigation into the matter, and last month it fired its accounting chief for attempting to destroy documents related to the probe.

Beazer shares slid 4.4% to $18.76 Monday, hitting a fresh 52-week low. The stock had traded as high as $48.60 in December.