Beazer Homes CEO Coughs up $7 Million

ATLANTA (CN) - The SEC ordered the CEO of Beazer Homes to cough up $7 million in money and stock he was paid while the company was committing accounting fraud. Ian J. McCarthy was not personally charged with the fraud - Beazer's former Chief Accounting Officer was - but he must reimburse the company for the bonuses and incentive-based money he was paid during that time.

The SEC sued McCarthy under Section 304 of the Sarbanes-Oxley Act. Without agreeing that he did anything wrong, McCarthy agreed to give up his "entire fiscal year 2006 incentive bonus," the SEC said in announcing the settlement.

That bonus consisted of $6.5 million in cash, 40,103 "restrict stock units" and 78,763 shares of "restricted stock," the SEC said. Beazer shares were selling at $4.72 this morning.

The SEC settled with Beazer in September 2008 and charged its former CAO Michael T. Rand in July 2009. Rand's litigation is continuing.

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