Federal prosecutors in North Carolina filed criminal fraud conspiracy charges against Beazer Homes USA on Wednesday, but they agreed to dismiss the case if the company complies with an agreement accepting responsibility for certain wrongdoing and pays millions to victims.
In the deferred prosecution agreement, the company accepted responsibility for fraudulent mortgage originations and accounting practices and agreed to pay $10 million immediately toward restitution to victims. Beazer also agreed to pay up to $50 million as the company, which has been battered by the housing downturn, recovers financially, according to prosecutors and court records.
The deferred prosecution agreement is in effect for five years. A spokeswoman for prosecutors, Suellen Pierce, said the charges against the company will be dismissed if it complies with the agreement.
Beazer said Wednesday that it also reached a settlement agreement with the Department of Housing and Urban Development and the civil division of the Department of Justice. The company also said several of its subsidiaries have entered into a settlement agreement with the North Carolina Real Estate Commission.
Facebook to simplify privacy settings
Facebook is overhauling its privacy controls over the next several weeks in an attempt to simplify its users’ ability to control who sees the information they share on the site.
Privacy has been a central, often thorny issue for Facebook because so many people use it to share personal information with their friends and family and beyond. But as the 5-year-old social networking service has expanded its user base and added features, its privacy controls have grown increasingly complicated.
The Palo Alto, Calif.-based company said Wednesday the new settings will give people greater control over what photos, updates and personal details they share with their friends, family and strangers on Facebook and, eventually, the wider Internet.
Soap retailer seeks Chapter 11 protection
Soap and lotion seller Crabtree & Evelyn Ltd. says it filed for Chapter 11 protection Wednesday, a victim of the recession and management missteps.
The pressure of repaying debt forced the company to file for bankruptcy, Acting President Stephen Bestwick said in a court filing. He said management changes had resulted in several shifts in strategy, hurting its wholesale business.
The Woodstock, Conn.-based company reported in a court filing that it owed $46.2 million in debt and had $31.7 million in assets as of March 31. The privately held company runs 126 retail stores.
It also sells Vera Bradley bags and wallets as well as LaSource, India Hicks Island Living and Naturals products.
Lear getting ready for bankruptcy filing
Automotive parts supplier Lear Corp. said Wednesday it is preparing to file for Chapter 11 bankruptcy protection and has lined up financing to fund operations business while under court protection.
Lear, which makes automotive seating systems and electronics, said it is still negotiating with lenders and bondholders for additional support for its restructuring plan. In the meantime, the company said it has a commitment for $500 million in loans to finance its bankruptcy from a group of lenders led by J.P. Morgan and Citigroup.
