False Claims Act Settlement

The U.S. Department of Justice (”DOJ”) announced in a July 1, 2009 Press Release that Beazer Homes USA Inc. has agreed to pay the United States $5 million dollars, plus contingent payments of up to $48 million dollars to be shared with victimized private homeowners, to resolve allegations that it, and Beazer Mortgage Corp., were involved in fraudulent mortgage origination activities in connection with federally insured mortgages.  See, http://www.usdoj.gov/opa/pr/2009/July/09-civ-654.html .  According to the DOJ Press Release, the settlement is in conjunction with a Deferred Prosecution Agreement entered into between the companies and the U.S. Attorney’s Office for the Western District of North Carolina.  The Deferred Prosecution Agreement provides for restitution to private homeowners who were victims of the companies’ alleged fraudulent activities, as well as to the Federal Housing Administration.