Newly Resigned Beazer Exec Investigated for Mortgage Fraud

A week ago, the Beazer Homes (BZH) Exec VP & CFO resigned effective immediately. Yesterday the news broke from Business Week that Beazer is being investigated for mortgage fraud. The stock was down -12% after-hours to $27.65 (and falling).

BZH has had a tough year, trading down from a 52-week high of $69.61.

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I’m sure glad it was never a Cara 100 company. Wow! Now I'm wondering if other homebuilders were doing something similar.

The news report says the ex-CFO O'Leary is headed to Kaydon Corp (KDN). I wonder.

This news story from Business Week is going to make for a real ugly market today, I think.