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Beazer CEO Returns $6.5M to Settle SEC Clawback Suit

Melissa Klein Aguilar | March 4, 2011

The chief executive officer of Atlanta-based homebuilder Beazer Homes will pay back $6.5 million in bonus pay and stock profits to settle a Securities and Exchange Commission complaint brought against him under the clawback provision of Sarbanes-Oxley.

According to the SEC complaint, Beazer CEO Ian McCarthy failed to reimburse the company for cash bonuses, incentive and equity-based compensation and profits from Beazer stock sales that he received in the 12 months after the company filed fraudulent financial statements. Beazer restated its financials for the fiscal year ended Sept. 30, 2006, and the first three quarters of fiscal 2006 due to a fraudulent earnings management scheme to inflate income and earnings.

Under Section 304 of SOX, McCarthy is required to reimburse the company for incentive-based compensation and stock sale...

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