Ex-Beazer Homes Finance Chief James O’Leary Settles SEC Lawsuit Over Bonus
The U.S. Securities and Exchange Commission settled a suit with Beazer Homes USA Inc. (BZH)’s former finance chief over stock-sale bonuses he got while the homebuilder’s accounting statements were out of compliance with federal law.
James O’Leary, the ex-CFO, must reimburse the company more than $1.4 million that he received after Beazer filed fraudulent financial results for fiscal 2006, the SEC said today in a statement. The agency accused the Atlanta-based homebuilder of falsifying reports to overstate income.
“The CFO got incentive compensation and profits at a time when the company was putting out inaccurate numbers, and pursuant to the settlement he returns the incentive compensation,” Bill Hicks, an SEC lawyer in Atlanta, said in a phone interview.
The SEC filed a single-count complaint against O’Leary in Atlanta federal court alleging failure to reimburse, according to the statement. O’Leary isn’t accused of misconduct and didn’t admit or deny liability, the SEC said. A federal judge must approve the settlement.
Larry Iason, a lawyer for O’Leary, didn’t immediately return a call seeking comment.
In March, former Beazer Chief Executive Officer Ian McCarthy agreed to return $6.5 million in compensation.
The case is SEC v. O’Leary, U.S. District Court, Northern District of Georgia (Atlanta).
-- With assistance from Jef Feeley in Wilmington, Delaware. Editors: Andrew Dunn, Mary Romano
To contact the editor responsible for this story: Michael Hytha at firstname.lastname@example.org
Bloomberg moderates all comments. Comments that are abusive or off-topic will not be posted to the site. Excessively long comments may be moderated as well. Bloomberg cannot facilitate requests to remove comments or explain individual moderation decisions.