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Atlanta Builder Beazer Will Pay $50 Million In Mortgage Fraud Case

Posted: 5:37 am EDT July 2, 2009Updated: 8:40 am EDT July 2, 2009

ATLANTA -- Federal prosecutors in North Carolina have filed criminal fraud conspiracy charges against Beazer Homes USA. But they've agreed to dismiss the case if the company accepts responsibility for certain wrongdoing and pays millions to victims.

In the agreement, the company accepts responsibility for fraudulent mortgage originations and accounting practices and says it will pay $10 million immediately for restitution to victims.

Prosecutors and court records say Beazer also agrees to pay up to $50 million as the company recovers from the economic downturn.

Beazer says it also has reached a settlement agreement with the Department of Housing and Urban Development and the civil division of the Department of Justice.

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