Mortgage fraud: Shred it!

This article was originally on a blog post platform and may be missing photos, graphics or links. See About archive blog posts.

It’s Mortgage Fraud Week Here at L.A. Land, and we have a wild one for you today. It involves possible obstruction of justice at a major home builder under investigation by the FBI.

From the Atlanta Journal-Constitution: ‘Atlanta-based Beazer Homes USA said it fired its chief accounting officer, Michael T. Rand, for attempting to destroy documents. The home builder, facing federal probes into its mortgage practices, disclosed the move in a filing with the Securities and Exchange Commission.

More: ‘’Michael T. Rand has been terminated for cause . . . due to violations of the company’s ethics policy stemming from attempts to destroy documents in violation of the company’s document retention policy,’ Beazer said in the SEC filing.’

Wall Street Reaction: ‘This raises red flags regarding the content of the documents in question, in our view,’ Michael Rehaut, an analyst at J.P. Morgan Securities.

Backstory: Beazer said it was ‘fully cooperating’ with an FBI investigation that it steered North Carolina home buyers into mortgages they could not afford.

Comments? Thoughts?
Photo Credit: Reuters