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Beazer Shares Sink Amid Federal Probe

Wednesday, March 28, 2007 9:46:23 AM

ATLANTA (AP) - Shares of Beazer Homes USA Inc. fell more than 8 percent Wednesday after the FBI said it is among agencies investigating possible fraud in the company's mortgage lending practices and other financial transactions. The homebuilder said it was cooperating with a federal prosecutor's request for documents.

The Atlanta-based company, which has suffered hefty losses amid a downturn in the housing market, is the subject of an investigation by the FBI and the U.S. attorney's office in Charlotte, N.C., along with the Internal Revenue Service and the U.S. Department of Housing and Urban Development, FBI agent Ken Lucas said Tuesday.

In a statement Wednesday morning, Beazer said it has been in contact with the U.S. attorney's office and it was cooperating with a request for unspecified documents. It said there have been no allegations of wrongdoing.


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